What legal instrument appoints someone to handle financial decisions if the person becomes unable?

• A. Power of attorney
• B. Beneficiary
• C. Heir
• D. Executor

Answer: (A)

A power of attorney, specifically a durable financial power of attorney, is the instrument that lets someone you trust handle your financial decisions if you become unable. It designates an agent to manage tasks like paying bills, managing bank accounts, signing tax forms, and handling investments on your behalf. The key point is durability: a durable POA remains in effect even if you later lose capacity, unlike a standard POA that may end when you’re incapacitated. Some people choose a springing version that only activates when a doctor certifies incapacity. You can revoke it while you’re competent, and it ends when you revoke it or pass away.

Beneficiary and heir describe who will receive assets after death, not who can manage finances during incapacity. An executor is named to administer the estate after death, not to handle affairs while you’re alive and incapacitated.