Power of Attorney
Authorizing someone to act on your behalf if you cannot.
What is Power of Attorney?
A durable financial POA survives incapacity and lets an agent manage financial affairs; a healthcare POA covers medical decisions. Without one, a family must pursue court-appointed guardianship - slow, public, and expensive.
Power of Attorney: a worked example
After a stroke, a durable POA lets a spouse manage accounts without a court proceeding.
More terms in Planning, Insurance & Estate
Emergency Fund
Liquid reserves covering several months of essential expenses.
Net Worth
Total assets minus total liabilities.
Term Life Insurance
Pure death benefit for a fixed period, no cash value.
Whole Life Insurance
Permanent coverage with a guaranteed cash value component.
Disability Insurance
Income replacement if illness or injury prevents you from working.
Long-Term Care Insurance
Covers extended custodial care that health insurance and Medicare do not.
Will vs. Revocable Trust
Directs assets through probate versus holding them outside probate.
Beneficiary Designation
Account-level instructions that override the will.