Power of Attorney
Protecting Your Ability to Manage Finances—Even If You Can’t
A Power of Attorney (POA) is one of the most important estate planning documents you can have in place. In simple terms, a power of attorney allows you to designate another individual to step into your shoes financially if you become incapacitated. This person can pay your bills, manage accounts, file taxes, and make financial decisions on your behalf—without the need for court involvement.
Without a power of attorney, family members often face long delays, legal hurdles, and court proceedings just to gain access to accounts that are solely in your name. During a time of crisis, that lack of access can create unnecessary stress and financial disruption.
A common misconception is that powers of attorney are only necessary for individuals in their late 80s or 90s. In reality, a power of attorney is appropriate for any adult, because unexpected illness, injury, or life events can happen at any age.
How a Power of Attorney Works
A power of attorney authorizes a trusted individual—known as your agent—to act on your behalf for financial matters if you are unable to do so yourself.
Depending on how it is drafted, a power of attorney can allow your agent to:
Pay household and medical bills
Access bank and investment accounts
Manage retirement accounts
File income tax returns
Work with financial institutions and advisors
Handle real estate or business matters
Without a valid power of attorney, no one can legally access or manage accounts held solely in your name—even a spouse or adult child—without court intervention.
Power of Attorney Is Important at Any Age
Life does not always provide advance warning. Accidents, illness, or sudden cognitive impairment can prevent even young and healthy individuals from managing their finances.
Having a power of attorney in place ensures:
Financial continuity during emergencies
Protection of assets
Faster response when decisions need to be made
Reduced burden on family members
A power of attorney is not about giving up control—it’s about planning for the unexpected.
Why Power of Attorney Is Especially Important for Aging Parents
As people live longer, more families are helping parents navigate later stages of life. While longevity is a positive development, advancing age often brings increased frailty, higher medical needs, and—at times—cognitive decline.
A power of attorney allows aging parents to:
Choose who will make financial decisions if they cannot
Avoid court-appointed guardianship
Maintain dignity and autonomy
Reduce stress for children and loved ones
Provide additional options for asset protection after a long-term care event
Creating or Updating a Power of Attorney
A power of attorney is typically drafted by an estate attorney as part of a broader estate plan. However, it can also be completed through reputable online legal platforms at a relatively low cost.
Regardless of how it is created, this is one document we strongly encourage clients to have in place.
For clients with older power of attorney documents, updating may be necessary. Many states have revised their statutory forms, and some financial institutions will not honor outdated POAs unless they are updated to current standards.
Regular review helps ensure the document remains valid and effective.
Our Role in Power of Attorney Planning
At Greenbush Financial Group, we help clients:
Understand how powers of attorney work
Determine who should serve as agent
Coordinate POAs with overall financial and estate plans
Identify when documents may need updating
Work with estate attorneys to implement the plan
While we do not draft legal documents, we help ensure that when documents are created, they align with your financial reality and long-term goals.
Our Power of Attorney Articles
Frequently Asked Questions About Power of Attorney
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What is a power of attorney?A power of attorney is a legal document that allows someone you choose to manage your financial affairs if you become unable to do so yourself.
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Do I need a power of attorney if I’m married?Yes. Spouses cannot automatically access accounts held solely in your name without a power of attorney.
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When does a power of attorney take effect?Depending on how it’s drafted, it can take effect immediately or only upon incapacity.
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Can I revoke or change my power of attorney?Yes. You can update or revoke it at any time while you are mentally competent.
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What happens if I don’t have a power of attorney?Your family may need to go through the court system to gain authority, which can be time-consuming, costly, and stressful.
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Who should I name as my power of attorney agent?Choose someone you trust implicitly—often a spouse, adult child, or close family member—who is capable of handling financial matters responsibly.
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Are older power of attorney documents still valid?Sometimes. However, many institutions require updated forms, and state laws change. Reviewing and updating old documents is strongly recommended.
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Is a power of attorney expensive to create?No. It is typically one of the least expensive estate planning documents and is available through attorneys or online legal platforms.
Contact Us . . . .
All of our services start with a complimentary consult. No high pressure sales tactics. We are financial planners, not salesmen.
About Our Firm: Greenbush Financial Group is an independent registered investment advisory firm based in Albany, New York, that provides four main services to clients: fee-based financial planning services, investment management, employer-sponsored retirement plans, and retirement planning services. The firm serves clients locally in the Albany region and virtually across the United States.
