Why would you need a power of attorney?

In the past, powers of attorney were mainly used for very specific purposes. For example, if you went overseas, you could give someone your POA to handle the sale of your home.

Nowadays, POAs are more often used as a safeguard to ensure that, should the need arise, another person can step in and do the day-to-day things for you, things that we generally take for granted.

What would happen, for instance, if you fell very ill and could not even sign your name on your joint bank account where both signatures are required? Giving POA to your partner can avoid a lot of delay and anguish in this situation.

Like us, financial planners also strongly recommend that their clients grant POA so their assets are not locked up if a person lacks the legal capacity to sign documents or do other things.