A durable financial power of attorney is a crucial document that everyone should have. It’s an essential part of both will-based and revocable living trust-based estate plans.

The main purpose of a durable financial power of attorney is to prevent the court from intervening in your financial matters if you become incapacitated or disabled.

This document allows you to appoint an agent who will manage all your financial affairs privately, should you be unable to do so yourself. A financial power of attorney can become effective either immediately upon signing, regardless of your disability status, or only if you become disabled, which is preferred by most individuals.

A well-drafted and executed financial power of attorney enables your family to manage your finances without the need for a conservatorship, also known as “living probate,” where the court appoints a conservator to take full control over your financial matters.