By Lisa Hostetler Brown, Managing Attorney, LawyerLisa
Expert Answer: A Financial Power of Attorney (FPOA) is one of the most important documents you can put in place to protect yourself and your loved ones. It allows you to appoint someone you trust—called your “agent”—to handle your financial and legal matters if you are unable to do so yourself. Without this safeguard, your family may be forced to go through a court process to gain authority, which can be expensive, time-consuming, and stressful.
Not all POAs are the same. A regular Power of Attorney is only valid while you have capacity and ends automatically if you become incapacitated. That’s a huge problem, because the moment you need help most—when you cannot act for yourself—the authority disappears. A Durable Power of Attorney (DPOA), on the other hand, remains valid even if you become incapacitated. This “durability” makes it the preferred and most effective option in estate planning. Without it, your family may still face the court system to gain control.
Timing is important as well.An Immediate POA becomes effective as soon as it is signed; whereas, a Springing POA is effective only after one or two physicians have certified that you are incapacitated, which adds another hurdle for your family in acting on your behalf.
In South Carolina, your POA, no matter the type, must be recorded in your county in order for your agent to use it. As a best practice, we recommend recording the POA as soon as your attorney creates it and you have executed it.
A strong financial POA should be detailed and broad enough to cover every possible financial scenario: banking, investments, retirement accounts, taxes, government benefits, property transactions, and even digital assets. One-page “form” powers of attorney often leave families stuck without authority when they need it most. For reference, our DPOAs are 20+ pages long!
Select an agent you trust completely, and we suggest naming two backup agents in case your first choice cannot serve when the time comes. There is a lot to consider when choosing your agents and your attorney should guide you through this decision.
Every adult age 18 or older needs a financial POA. Incapacity can happen at any age due to accident, illness, or injury. A DPOA ensures your bills are paid and assets remain protected without forcing your family into court.
A Financial Power of Attorney is not just a form—it’s your family’s lifeline in a crisis. Without it, your loved ones may face courts, delays, and unnecessary expenses just to keep your life running. When paired with a Healthcare Power of Attorney, you create a complete safety net that ensures your wishes are honored in every circumstance. By working with an experienced elder law attorney, you can be confident your documents include the right provisions for your state and your unique needs—giving you and your family true peace of mind.
