While planning your estate and deciding on a power of attorney, did you account for your investments? Having a financial POA is undoubtedly essential, but careful planning is especially vital when you have investments to think about.
To help you make a favorable decision for your financial future, and your heirs’ financial future, see what FINRA has to say on the matter.
Choose someone who understands your investment objectives and goals
Your financial POA candidates should not only know about your overall goals and objectives regarding your investments, but also understand those goals and objectives. An in-depth level of knowledge better ensures that the individual handles your investments just as you would. Remember, your family may depend on your investments for their financial future after you pass, so choose wisely.
Consider a durable POA
Will your POA stand if you become incapacitated and unable to make financial decisions? Non-durable POAs do not hold up under such conditions, but durable POAs do. Another reason to have a durable POA is so you do not risk the court deciding who acts as your conservator or guardian, a person who may be your last choice for such a role.
Be specific in your POA
Leave nothing to chance or open to interpretation in your POA. Make it plain what authority your POA has. For instance, do you want your POA to have full control over your investment portfolio? Perhaps you only want to grant the individual limited authority regarding brokerage account trades. Get specific down to individual accounts and assets.
Invest in a well-thought-out POA strategy when mapping out the investment portion of your estate plan. For more insight, sit down with a legal professional who can help you create an airtight document.