Can the agent of a financial power of attorney be paid?

Commonly, people give their agent broad power to handle all of their finances. But you can give your agent as much or as little power as you wish. You may want to give your agent authority to do some or all of the following:

• use your assets to pay your everyday expenses and those of your family
• buy, sell, maintain, pay taxes on, and mortgage real estate and other property
• collect Social Security, Medicare, or other government benefits
• invest your money in stocks, bonds, and mutual funds
• handle transactions with banks and other financial institutions
• buy and sell insurance policies and annuities for you
• file and pay your taxes
• operate your small business
• claim property you inherit or are otherwise entitled to
• transfer property to a trust you've already created
• hire someone to represent you in court, and
• manage your retirement accounts.

The agent is required to act in your best interests, maintain accurate records, keep your property separate from his or hers, and avoid conflicts of interest.

Making a Financial Power of Attorney

To create a legally valid durable power of attorney, all you need to do is properly complete and sign a fill-in-the-blanks form that's a few pages long. Some states have their own forms, but it's not mandatory that you use them.

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