Creating a financial power of attorney can be useful to plan ahead in case you cannot oversee your finances because of a medical condition. This can include having someone pay your bills, monitor your investments, collect insurance proceeds, or pay your taxes. You can make the document “springing,” in which case it will only come into effect if you cannot make decisions yourself. Thus, if you suffered a car accident that left you immobile for several weeks, the document could come into effect automatically and the agent could oversee your financial matters immediately. Banks and other parties would be legally obligated to transact with the agent because of the power of attorney.
Alternatively, you can draft the agreement to go into effect for only a set period if you know you will not be able to attend to your business because, for example, you are going on vacation for several weeks.
You must be careful in selecting your agent because this person can have control over a substantial portion of your assets. So you must only choose someone you know you can trust completely.