Law Offices of Alice A. Salvo
Start Your Solution. Schedule a Free Consultation Today.

What is a durable financial power of attorney?

If you are a California resident who always has managed all aspects of your financial life yourself from budgeting to keeping a checkbook register to handling your own 401(k) and other investments, you obviously are very intelligent and very organized. You may be someone who is operating a family business basically on your own. Have you ever wondered, though, about who will handle these things and make financial decisions for you during times when you cannot do so yourself? If so, you may wish to think about executing a financial power of attorney.

FindLaw explains that a financial power of attorney is a legal document, probably drafted by your attorney, wherein you appoint someone you trust, often called your attorney-in-fact or your financial agent, to make certain decisions and take certain actions on your behalf.

The durability aspect

Your financial power of attorney can specify a time period during which you want your agent to manage your financial affairs, such as during an extended period of time when you plan to be out of the country. This is called a “springing” financial power of attorney.

Your other option is to make it a durable financial power of attorney. In this case it goes into effect immediately and remains in effect until you die or revoke it at some time in the future, whichever of those events occurs first.

Examples of what you may want your financial agent to do

While you are in complete control of what you decide you want your agent to do for you, you may want to consider allowing him or her to do the following:

  • Run your business, including paying its taxes
  • Pay your personal bills and taxes
  • Collect and deposit any Social Security, retirement benefit or other periodic payments you receive
  • Buy and sell assets
  • Manage your investment accounts, real estate holdings, etc.
  • Buy insurance for your business and/or for you personally

Be assured that your agent cannot “run amok” and do anything he or she wants to do with your assets. Instead, he or she always must put your best interests ahead of everything else. This information is only intended to educate and should not be interpreted as legal advice.

No Comments

Leave a comment
Comment Information
Email Us For a Response

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location:

Law Offices of Alice A. Salvo
20350 Ventura Boulevard
Suite 110
Woodland Hills, CA 91364

Phone: 818-676-9572
Fax: 818-716-9275
Map & Directions

  • Super Lawyers
  • Peer Review Rated