A Financial Power of Attorney (POA) gives an individual significant control over your financial well-being. It’s stressful work, and your family and friends might be tempted to make choices based on their own opinions rather than your expressed wishes. However, appointing a Corporate Financial POA is an alternative that can help mitigate this risk.
Here are some of the benefits to having a Corporate POA:
- Sibling rivalry
When one child is named power of attorney, resentment often builds between the other children and relatives. Siblings may question the chosen agent’s choices, argue over the details of their loved one’s finances, or even harass their loved one in an effort to gain control of their affairs. A Corporate POA is outside the family, preserving the relationships among siblings, spouses, and grandchildren.
- Management concerns
Agents must sacrifice a lot of time and effort to handle finances. Even if an agent is acting in good faith, they may not have the accounting skills to manage your affairs in a timely and cost-effective way. Worse, those acting in bad faith may take advantage of their position by spending your savings or attempting to get you to change your will. A neutral third-party has the expertise and professional experience to navigate these responsibilities.
- Inheritance conflicts
Heirs may have a financial motivation to keep a loved one’s expenses as low as possible. The money to pay for these things comes directly out of their inheritance, which can easily cloud their judgment. For example, if Mom wants to receive in-home care rather than go into a nursing home, the family may try to move her into a facility to save money. Or, one of her children might move into her home, making it harder to evict them if the house is left to someone else. A Corporate POA will follow your instructions for your financial needs without influence from other parties or personal motivations.
- Outliving Agents
There could be situations where you actually outlive a friend or relative that’s willing to serve or they could become incapacitated themselves, preventing them from serving. A Corporate POA will be available to serve you through every phase of life.
- End of Life Assistance
A Corporate POA’s engagement ends at the time of death, but they still have the expertise to assist Personal Representatives, Trustees, or others named in your estate plan to carry out you wishes in an efficient, timely manner.
A Corporate Financial POA can give you peace of mind, knowing that your finances will be taken care of by an unbiased, third-party equipped with the knowledge and experience to serve you according to your wishes.