Why Every Financial Plan Should Include a Power of Attorney

When we think about financial planning, most people focus on the fun parts — investing, retirement, buying a home, or leaving a legacy. But one of the most critical pieces of a sound plan is often overlooked: having a Power of Attorney (POA) in place.

A POA gives someone you trust the legal authority to act on your behalf for financial matters if you become incapacitated — even temporarily. It’s not just for older adults or those with serious health issues. In our experience, it’s a core tool for anyone who wants to ensure their finances are protected in an emergency.

Here’s why it matters:

1. Emergencies are unpredictable

Whether it’s a car accident, medical event, or overseas travel delay, a POA ensures that someone can step in and manage your financial obligations — from paying bills to handling investment decisions — without legal red tape.

2. Financial institutions are getting stricter

Most custodians now require a valid POA on file before they’ll allow even a spouse or adult child to act on your behalf. Without it, accounts may be frozen, creating unnecessary stress and complications.

3. It protects your wishes — and your loved ones

If something happens and there’s no POA, your family may be forced to go to court to establish guardianship or conservatorship. This process is expensive, slow, and emotionally draining. A POA helps avoid all that.

4. It’s not permanent

A POA only becomes active when and how you choose — and you can revoke or revise it at any time. It simply gives you peace of mind and your family a clear legal framework if they need to step in.

At Berkshire Wealth Group, we now encourage all clients to have a POA on file. It’s a simple step that can prevent complex problems. If you already have one, let us know so we can ensure it’s up to date and stored with our custodian. If you don’t, we’re happy to help guide you through the process or connect you with a trusted estate planning attorney.

As always, our goal is to make sure your plan is comprehensive and ready for whatever life brings.

Have questions? Reach out — we’re here to help.