Utah Durable Power of Attorney
Who Can Handle Finances If You Can’t in Utah
Many Utah adults assume a spouse or adult child can automatically step in to handle finances during a medical crisis. In Utah, that authority usually does not exist without written documents.
A durable power of attorney for finances allows you to name someone to manage financial matters if you become incapacitated. This page explains how financial powers of attorney work in Utah, what authority they provide, and where misunderstandings commonly arise.
Why this Matters
Financial decisions often need to be made quickly during illness or incapacity.
Without documented authority, bills may go unpaid, accounts can be frozen, and real estate transactions may stall. Even cooperative families can face delays when institutions require proof of authority.
Advance planning helps ensure continuity without court involvement.
What a Durable Power of Attorney Is
A durable power of attorney (POA) is a legal document that authorizes another person—called an agent—to handle financial matters on your behalf.
“Durable” means the authority continues even if you become incapacitated.
Common areas of authority include:
- Paying bills and managing accounts
- Handling banking and investments
- Managing real estate transactions
- Dealing with insurance and benefits
- Running a business or signing contracts
A financial POA operates during life. It does not control what happens after death.
How Financial Powers of Attorney Work in Utah
Utah’s power of attorney rules are governed by Utah Code §75-9-101 et seq.
A Utah POA can:
- Become effective immediately, or
- Become effective upon incapacity (often called a “springing” POA)
Financial institutions rely on written authority. Verbal permission or family relationships are not substitutes.
Choosing a Financial Agent
A financial agent is responsible for acting on your behalf and within the authority granted.
Common assumptions include:
- “Spouses automatically have access.”
- “Adult children can step in informally.”
Without a POA, families may need court-appointed guardianship or conservatorship to gain authority.
Agents must act in good faith and follow the document’s limits.
What a Financial Poa Can and Cannot Do
A POA can authorize broad or limited powers, depending on how it is written.
It generally can:
- Manage accounts
- Sign documents
- Handle property transactions
It generally cannot:
- Change a will or trust
- Make gifts unless expressly authorized
- Act after death
Many Utah families assume a POA “covers everything.” It does not unless authority is clearly granted.
Common Utah Misconceptions
- “Joint accounts solve incapacity.”
Joint ownership may not cover all assets and can create other issues. - “A will authorizes financial decisions.”
Wills apply after death, not during incapacity. - “POAs are only for older adults.”
Incapacity can happen at any age.
What Can Go Wrong if It's Done Incorrectly
A financial power of attorney is effective only if it is properly drafted, executed, and accepted. When problems arise, families often discover the gaps during a crisis.
Common issues include:
- Authority that is too narrow
A POA may allow bill payment but not real estate, business transactions, or investment management, causing delays when broader authority is needed. - Institutions refusing to honor the document
Banks or financial institutions may reject outdated, unclear, or improperly executed POAs. - No durability language
If the document is not durable, authority can end at incapacity—the moment it is needed most. - Delayed access to accounts
Without clear authority, accounts may be frozen, bills unpaid, and transactions stalled. - Increased court involvement
When a POA is missing or unusable, families may need guardianship or conservatorship to gain authority.
These issues usually result from assumptions about how POAs work rather than from the concept itself. Clear authority and proper execution determine whether a financial POA functions as intended.
Who This Matters Most For
Understanding financial powers of attorney is especially important for:
- Homeowners
Mortgage payments, insurance, and property transactions often require formal authority if incapacity occurs. - Business owners
Day-to-day operations, payroll, and contracts may need to continue during illness or absence. - Married couples with separate accounts or assets
Spouses do not automatically have authority over individually owned finances. - Unmarried adults
Partners do not have default financial decision-making authority under Utah law. - Families caring for aging parents
Adult children often need documented authority to assist with finances. - Anyone with complex or time-sensitive financial obligations
Bills, investments, and deadlines do not pause during incapacity.
For these individuals and families, a financial power of attorney helps clarify who can act when the unexpected occurs.
How Things Play Out
The One Where the Business Didn’t Miss a Beat
Business Owner — Operations Continued During Incapacity
Situation: A business owner in Utah County became temporarily incapacitated.
Problem: Without authority in place, business operations can stall during incapacity.
Outcome: A durable power of attorney allowed the agent to sign contracts, pay employees, and keep the business running without court involvement.
Lesson: Durable powers of attorney preserve continuity when incapacity interrupts daily operations.
The One Where the Bills Couldn’t Be Paid
Family Caregivers — Accounts Frozen
Situation: An adult was hospitalized without a durable power of attorney.
Problem: Family members had no legal authority to access accounts or pay ongoing bills.
Outcome: Accounts remained frozen, late fees accrued, and financial issues compounded during the medical crisis.
Lesson: Legal authority must exist before it is needed.
The One Where the Sale Fell Apart
Homeowner — Limited Authority
Situation: A person granted a power of attorney authorizing bill payment but not real estate transactions.
Problem: During incapacity, the agent lacked authority to complete a pending home sale.
Outcome: The transaction stalled until capacity returned or court authority was obtained.
Lesson: The scope of authority in a power of attorney matters and must match real-world needs.
How a Financial POA Fits Into a Complete Estate Plan
A financial POA addresses incapacity, not inheritance.
It works alongside:
- Health care directives
- Wills and trusts
- Trust administration planning
Together, these tools help manage both financial and medical decisions without court supervision.
Common Questions
Financial authority during incapacity depends on preparation, not assumptions.
The right plan depends on your family, assets, and goals. If you’re exploring your options, our team can walk you through what these concepts mean for a typical Utah family.
This page offers general educational information about Utah estate planning. It is not legal advice, and any examples described are hypothetical illustrations, not real clients or situations.