A power of attorney (POA) is one of the most overlooked but important estate planning documents. It allows someone you trust to act on your behalf if you're unable to manage your own affairs.
What a Financial Power of Attorney Does
A financial power of attorney authorizes an "agent" you choose to handle financial matters on your behalf — paying bills, managing bank accounts, filing taxes, or handling real estate transactions. In Virginia, you can make a POA "durable," meaning it remains effective even if you become incapacitated, which is typically the point of including one in an estate plan.
What Happens Without One
If you become incapacitated without a power of attorney in place, your loved ones cannot automatically step in to manage your finances — even a spouse. Instead, they may need to petition a Virginia court to be appointed as your guardian or conservator, a process that takes time, costs money, and plays out under court supervision.
Financial vs. Medical Powers of Attorney
A financial power of attorney is different from a medical power of attorney (sometimes combined with an advance directive), which authorizes someone to make healthcare decisions on your behalf. A complete estate plan typically includes both, since they cover different types of decisions.
Choosing an Agent
Because your agent will have significant authority over your finances, choose someone you trust completely — often a spouse, adult child, or close family member. You can also name a successor agent in case your first choice is unable to serve.