Durable power of attorney for finances, or a financial power of attorney, is a legal document that gives someone authority to manage an individual’s financial affairs. The person named to represent the individual is referred to as an agent or attorney-in-fact.
Individuals may sign a durable power of attorney for finances to preserve an individual’s finances if that individual later becomes incapacitated. Individuals may also sign a durable power of attorney for finances when they want to pool resources with another person for financial security. For example, in In re Chapman, a widow signed a durable power of attorney for finances to share a household and finances with her daughter after her husband died.
[Last updated in October of 2021 by the Wex Definitions Team]