Financial Power of Attorney – Glossary

Estate Documents

A document that gives a trusted person authority to handle your financial matters if you cannot do so yourself.

A financial power of attorney is a legal document that gives another person authority to manage your financial affairs. That person is called your agent or attorney-in-fact. This can include paying bills, managing investments, filing taxes, and handling real estate.

Durable vs. Springing

Durable power of attorney: Takes effect right away upon signing. It stays in effect if you become incapacitated. This is the most common type in Arizona estate plans.
Springing power of attorney: Only takes effect when a specific event occurs. Usually, a physician must determine you are incapacitated. This adds a safeguard, but the activation process can cause delays.

Why It Matters

Without a financial power of attorney, your family may need to ask the court for a conservatorship. That process is expensive, time-consuming, and public. A financial power of attorney avoids all of that by naming someone you trust in advance.

A financial power of attorney ends at your death. After death, your successor trustee or personal representative takes over.