Power of attorney

A legal document authorising someone to act for another, for example over their finances if they lose capacity. Arranged in advance, it avoids a court having to appoint someone.

Where you will meet it

Power of attorney appears in 2 learning outcomes on the CFA syllabus. A few of them:

• Explain and propose retirement wealth planning that takes account of legal, tax and cross-border issues
  CFA Level III · Private Wealth Pathway

  “Legal planning covers beneficiary designations, powers of attorney and incapacity.”

• Explain and propose wealth management approaches that make the most of the human and financial capital, and so the economic net worth, of families in complex circumstances
  CFA Level III · Private Wealth Pathway

  “Tools include marital agreements, trusts that separate assets for children of different relationships or provide for a dependant without jeopardising public support, clear beneficiary designations, powers of attorney, guardianship and life insurance to equalise inheritances.”

Practise it

• Today's practice question One question, with every wrong option explained.
• Free Level I diagnostic test Twelve questions that show which topics to start with.
• Free finance calculators Check your arithmetic on the exam's core formulas.

All terms beginning with P · Glossary