Financial Power of Attorney (FPOA)

serving clients in Henderson, Las Vegas and Clark County, NV

While a Financial Power of Attorney (FPOA) is not required in estate planning, it is highly recommended because it ensures that your financial affairs are managed if you are unable to handle them yourself due to illness, absence, or incapacity.

In some ways, an FPOA is like an HCPA (Healthcare Power of Attorney) because both involve choosing a trusted person to make crucial decisions on your behalf. The key difference is that an FPOA deals with financial matters, whereas an HCPA focuses on healthcare decisions.

Smith Legal Group will work with you to draft a Financial Power of Attorney document that complies with Nevada law, making it legally binding. All aspects of this process will be explained, from the responsibilities of the person you will be appointing as your financial agent to the scope of the financial decisions they will be authorized to make and settle on your behalf.

Call (702) 410-5001 for a free consultation to start adding a Financial Power of Attorney to your estate plan.

Financial Questions to Consider if You Become Incapacitated

Many people don’t consider what would happen if an accident or illness left them unable to make some or all of their financial decisions. Creating a Financial Power of Attorney (FPOA) helps address this. Although an FPOA can be updated or revoked as needed, it’s crucial to define the guidelines or preferences you want your designated financial agent to follow.

Here are a few questions a Smith Legal Group estate planning lawyer will ask you in the early stage of drafting your Financial Power of Attorney document:

  • Have you documented all your financial details? This includes listing your assets like bank accounts, investments, and property, as well as your debts, such as loans and credit obligations. Also, include other sources of income and financial accounts.
  • How do you want your finances handled? Make a list of key financial decisions, such as managing investments, paying bills, or handling property transactions. The more details you provide, the easier it will be for you agent to follow your directions.
  • How much authority do you want to grant your financial agent? You can grant broad powers to manage all your financial affairs (general authority) or limit the authority to specific areas, such as property management and tax matters (limited authority). Limited authority can also cover specific tasks, like paying bills, managing bank accounts, or handling investments.

Keep in mind that decision-making authority can be adjusted based on your situation. For short-term incapacity, you might prefer to grant your agent limited authority. If your health condition worsens and you’re unlikely to recover, you might opt for general authority.

Whatever you decide, instruct your attorney to clearly document the conditions under which your agent can act. This will help prevent confusion if you become temporarily or permanently incapacitated.

For example, a mild stroke might temporarily impair your ability to make sound financial decisions, so you may want your financial agent to handle only specific tasks, such as paying bills, during your recovery. However, if the stroke is severe and leads to significant memory loss and permanent cognitive issues, you would likely need to grant your agent general authority to manage all your financial decisions.

Selecting a Financial Agent: Key Qualities to Consider

Choosing a financial agent to manage your finances if you become incapacitated due to illness or an accident should be a top priority. If you agree, it’s equally important to select the right person for this role.

At Smith Legal Group, we can’t tell you who to choose, but we can help by describing the qualities and personality traits that are best suited for this important role.

  • Trustworthiness: They should be reliable and act with integrity, ensuring that they handle your finances according to your wishes and best interests.
  • Responsibility: The agent must be organized and diligent, keeping accurate records and managing your financial matters responsibly.
  • Financial Acumen: A strong understanding of financial matters, including investments, taxes, and estate planning, is crucial for making informed decisions.
  • Good Communication Skills: They should be able to clearly communicate with you, your family, and financial institutions, and be adept at explaining financial decisions.
  • Record-Keeping Capacity: They should have the capacity to document financial activities and provide updates or reports upon request.
  • Decision-Making Ability: The agent should be capable of making sound financial decisions under pressure, especially if complex or urgent issues arise.
  • Empathy and Sensitivity: They should be understanding and considerate of your preferences and needs, respecting your financial goals and personal values.
  • Availability: The agent must be available and willing to dedicate the necessary time to manage your finances effectively, especially in critical situations.
  • Conflict Resolution Skills: They should be able to handle any disputes or conflicts that may arise, both within the family and with external parties.

Many clients choose their spouse as their primary agent and name their children as alternate agents. However, this may not always be the best decision, especially if you and your family have different financial goals or approaches. For example, family members might disagree on issues such as preserving wealth, maximizing income, investing, budgeting, or supporting specific family members.

If your spouse has passed away or if one of your children is estranged, having an alternative agent is essential. Fortunately, you can hire professionals, such as elder care attorneys or certified daily money managers, to serve as your financial agent for your FPOA.

It’s important to note that your financial agent does not need to be physically near you. Advances in online technology, such as banking, video conferencing, and e-signatures, make physical proximity less important.

How To Get a Financial Power of Attorney in Nevada

Smith Legal Group recommends hiring one of our estate planning attorneys to create your Financial Power of Attorney document. This ensures that it is legally valid, error-free, personalized to your needs, and compliant with Nevada-specific requirements.

Beware of purchasing FPOA documents online. These are often based on generic templates that can lead to misinterpretations or conflicts. Additionally, they may be difficult to update or revoke if your circumstances change.

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Smith Legal Group can assist you in drafting a Financial Power of Attorney to include in your estate plan, ensuring that your financial wishes are upheld.

To avoid interference from family members, financial institutions, or legal authorities, we ensure your FPOA is clear, comprehensive, and legally binding according to Nevada law.

If your circumstances change, we can update your FPOA as needed. Common minor changes include:

  • Updating financial agent information.
  • Changing scope of authority.
  • Revising instructions for financial matters.
  • Incorporating new assets or accounts.
  • Adjusting for changes in law, moving out of state.
  • Clarifying ambiguous terms.

Complete our submission form below or call us at (702) 410-5001 for a free consultation if want to add a Financial Power of Attorney to your estate plan.

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