A power of attorney gives another person, such as a spouse or child, the right to make some legal decisions for you in the event you become incapacitated. Not all allow access to financial resources, since they can specify or limit the range of decisions. A financial power of attorney, however, permits an individual to make financial decisions for you that include IRA withdrawals.
Benefits and Pitfalls
Financial POAs can be beneficial to both parties. The ability for someone to access the money in your IRA to cover medical costs related to your incapacitation, for example, is one of the main benefits. It also allows your spouse to access funds to cover living expenses without intervention from the court. The power of attorney, unfortunately, gives the person unrestricted access to your finances, so think carefully before making any decisions.
- National Caregivers Library: What Is Power of Attorney?
- LexisNexis: The Case for Naming a Power of Attorney for an IRA
- The Patient Rights Council. "Advance Directives: Definitions." Accessed June 30, 2020.
- American Bar Association. "Power of Attorney." Accessed June 30, 2020.
- Trigoboff, 2015.
- American Bar Association. "Giving Someone a Power of Attorney for Your Healthcare." Accessed June 30, 2020.