A financial power of attorney allows you to grant a wide variety of powers over your monetary affairs.
In Kentucky, you can authorize an agent to perform one or more of the following acts on your behalf:
- Bank transactions
- Securities transactions
- Taking out loans
- Selling, buying, or managing real estate
- Making gifts
- Collecting debts
Often, people enact a power of attorney to prepare for a potential illness or injury, and then the power would come into effect only if an illness or injury occurred that left the principal unable to oversee his or her finances. You can also use this tool if you are going on a long vacation. You can specify that the power will only remain in effect for the dates of your vacation, and that way you can have the agent pick up payments or make deposits in your stead so your financial affairs keep running smoothly. This is also useful for someone who will serve a specified tour of duty in the military.
It is important to specify that you want a durable power of attorney if you need it to remain in effect after you have lost the ability to make your own financial decisions.