Financial power of attorney: what it covers and when it starts

Updated 2026-10-16 · Expert review in progress

The short answer

A financial power of attorney lets your agent handle money and property for you while you're alive: banking, bills, investments, retirement accounts, taxes and your home. In Washington it starts when you sign unless it says otherwise, and it ends at incapacity unless it includes wording that keeps it in force.

Picture a month in the hospital. The mortgage still comes due, the pension still lands in the bank, and someone has to pay the dog sitter. A financial power of attorney is the document that lets a person you chose take care of all that.

It's one of the four roles in an estate plan, and probably the one used most often. This page explains what a financial agent can do with your accounts, what they can't do without special wording, and when the document actually starts working.

What is a financial power of attorney?

It's a signed document that names an agent to handle your money and property. You stay in charge while you're able. The agent acts alongside you, or in your place when you can't.

It's one type of power of attorney. The other common type covers medical decisions. Washington allows one document to cover both, but health care authority has to be expressly granted, under RCW 11.125.240.

What can a financial agent do with my accounts?

That depends on the subjects your document grants. Washington's law describes each subject in detail, so a document can grant them by name. Here are the main ones, with what each allows unless your document says otherwise.

Subject	What the agent can do	Washington statute
Banks and credit unions	Open, change and close accounts, withdraw money, write checks, use a safe deposit box	RCW 11.125.300
Investments	Buy, sell and exchange stocks and bonds; open and manage brokerage accounts	RCW 11.125.290
Retirement accounts	Choose the timing of withdrawals, make rollovers and contributions, manage investments in IRAs and employer plans	RCW 11.125.370
Real estate	Buy, sell, lease, repair and pay costs on your home and other property	RCW 11.125.270
Taxes	Prepare, sign and file your returns	RCW 11.125.380
Everyday living	Keep up your usual standard of living: housing, food, help at home, health care and custodial care costs	RCW 11.125.350
Government benefits	Deal with programs such as Medicare and Medicaid	RCW 11.125.360

A document can also grant everything at once. In Washington, if it gives the agent authority to do all acts you could do, the agent has general authority over all of these subjects, under RCW 11.125.250.

Day to day, it's quieter than the table suggests. It's paying the utility bills, moving money to cover a care bill, and keeping the property tax current.

What needs special wording?

Some powers can change who inherits from you. Washington treats those as too important to be implied. An agent can do the following only if the document expressly grants it (RCW 11.125.240):

make gifts
create or change a beneficiary designation
create or change rights of survivorship
create, amend or revoke a living trust
waive your right to a survivor benefit under a retirement plan
create, amend or revoke a community property agreement

There's one more safeguard. Unless your document says otherwise, an agent who isn't your spouse, registered domestic partner, parent, grandparent or descendant can't use these powers to give themselves an interest in your property (RCW 11.125.240).

Whether you want any of these powers is a real choice. Talk it through with whoever drafts the document.

What a financial power of attorney won't do

Act after your death. It ends when you die, under RCW 11.125.100. Your executor handles things from there.
Manage your Social Security check on its own. The Congressional Research Service explains that the agent must also be appointed by Social Security as a representative payee.
Replace your trustee. Property held in a trust is managed by your trustee, under the trust's own terms.
Make medical decisions, unless health care authority is expressly granted.

When does a financial power of attorney start?

There are two choices, and Washington's default is the first one.

Immediately. In Washington, a power of attorney is effective when signed unless it says it starts at a future date or event, under RCW 11.125.090.
Later, usually at incapacity. This is a springing power of attorney. Someone has to confirm the trigger in writing. If you haven't named that person, Washington requires a written finding by a physician or licensed psychologist who examined you, or by a judge or appropriate official.

An immediate document doesn't mean your agent takes over. It means they can act if needed, without waiting for paperwork about your health.

Does it keep working if I become incapacitated?

Only if it says so. This is the most important detail on the page.

In Washington, a power of attorney ends when you become incapacitated unless it contains wording showing you meant it to continue, under RCW 11.125.040. The statute gives examples, such as "This power of attorney shall not be affected by disability of the principal." A document with that kind of wording is called durable.

That's the opposite of the rule in some other states. Idaho, for example, treats a power of attorney as durable unless it says otherwise, under Idaho Code 15-12-104. The page on durable powers of attorney explains why this matters so much.

Will the bank accept it?

Washington gives notarized documents extra weight. A bank or other business presented with one must accept it, or ask for a certification or translation, within seven business days, under RCW 11.125.200. It also can't demand its own form for authority your document already grants.

There are exceptions, such as when the business believes in good faith that the document isn't valid. A business that refuses in violation of the law can be ordered to accept it and pay legal fees.

In Washington, a photocopy or electronic copy of the original generally has the same effect as the original, under RCW 11.125.060.

What does the agent owe me?

Your agent is a fiduciary: legally required to act in your interest and follow what you wrote. In Washington, the duties are set out in RCW 11.125.140. They include acting in good faith, staying within their authority, avoiding conflicts and keeping records of every transaction.

Unless the document says otherwise, a Washington agent is entitled to reimbursement of reasonable expenses and to reasonable compensation, under RCW 11.125.120. You can set different terms in the document.

A quick checklist before you sign

The document says it survives incapacity (durability wording).
You've decided whether it starts now or later.
The subjects you want covered are listed, or general authority is granted.
You've decided, on purpose, about gifts and beneficiary changes.
A backup agent is named.
It's signed the way your state requires. In Washington that means notarized or witnessed by two qualified people, under RCW 11.125.050.

The guide to getting a power of attorney walks through each step. If you're unsure who to name, the page on naming a friend as power of attorney may help.

Common questions

Can my financial agent sell my house?

Yes, if your document grants authority over real property or general authority. In Washington, that subject lets an agent buy, sell, lease and maintain real estate, unless the document limits it.

Can my agent pay themselves?

In Washington, unless the document says otherwise, an agent is entitled to reasonable compensation and reimbursement of reasonable expenses. You can change that in the document, for example by saying the agent serves without pay.

Does a financial power of attorney cover my Social Security?

Not by itself. The Congressional Research Service explains that the agent must also be appointed by Social Security as the beneficiary's representative payee to manage those payments.

Can I still use my own bank account after signing?

Yes. Signing a power of attorney doesn't take away your own authority. In Washington, you can also revoke it while you have capacity.

Sources

This page is general information, not legal or financial advice. Laws vary by state.

Keep reading

The four rolesWhat is a durable power of attorney?What is a durable power of attorney? One that keeps working if you can't manage your affairs. Why the wording matters, with Washington's rule.The four rolesSpringing vs immediate power of attorneyA springing power of attorney waits until a future event, usually incapacity. How it compares with an immediate one, who confirms the trigger, and the delays.The four rolesThe four roles in an estate plan, and who should fill themWho should I name as power of attorney, executor and trustee? A plain guide to the four roles in every estate plan and how to choose who fills each.The next-of-kin gapWho decides for you when you can't? The next-of-kin gapWho is my next of kin, and who decides for me if I can't? How the law picks medical decision makers, heirs and executors, and how to close the gap.