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Power of Attorney & Your Investments

| April 07, 2016
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With more Americans living into fragility, POAs and other advanced directives are becoming more important.  The point of a Power of Attorney (POA) is to delegate an individual’s legal authority to another person, in case of incapacitation or mental incompetence.  A durable Power of Attorney permits an assignee, or Agent, to act on behalf of the Principal once the Principal executes (signs) the durable Power of Attorney.  The Principal can appoint multiple Agents, if desired. 

Financially, a Power of Attorney can be extremely helpful in managing your affairs if something happens to you.  There are many factors to determine the type of POA you need, and how it can be used.  FINRA recently issued an alert to provide tips and information on using these arrangements as they have been used as a vehicle for abuse by family members and trustees to take advantage of clients, older parents, relatives, and friends.

These 10 tips for understanding a Power of Attorney and your investments are a helpful guide when considering how to plan for your future.  We encourage you to read these tips to help you understand, create and prudently use a POA for your investment account assets.  Please reach out to us with further questions on this financial planning tool.

View FINRA's Investor Alert

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