Detailed Answer

A financial power of attorney (POA) is a document in which one person (the principal) gives another person (the agent or attorney‑in‑fact) legal authority to handle the principal’s financial affairs. In Arizona you can tailor that authority in many ways, but common features and rules include the following.

1. Scope of typical financial powers

Unless you limit the document, an agent can generally do things like:

• Access and manage bank and credit union accounts: deposit, withdraw, open, and close accounts; endorse checks.
• Pay bills and manage everyday expenses on behalf of the principal.
• Collect income and benefits: Social Security, pension, disability, and other regularly paid benefits.
• Handle tax matters: file and sign tax returns, request tax documents, and deal with the IRS or Arizona Department of Revenue.
• Buy, sell, lease, or manage real estate and other property, unless the POA specifically prohibits such transactions.
• Manage investments and brokerage accounts: buy, sell, and trade securities and manage investment strategy within any limits you set.
• Operate or sell a business owned by the principal, subject to limits in the document and other law.
• Access safe‑deposit boxes and other secured storage.
• Hire professionals: accountants, brokers, attorneys, and property managers, and pay them from the principal’s funds.
• Make gifts, if the POA explicitly authorizes gifting. Many forms do not include gifting power unless specifically chosen.

2. Durable vs. non‑durable and “springing” powers

You decide when the agent’s authority starts and whether it continues if you become incapacitated. Two common choices are:

• Durable POA: remains effective if the principal becomes incapacitated. To make a POA durable, include clear language stating the authority continues despite the principal’s incapacity.
• Springing POA: becomes effective only after a specified event, usually a doctor’s determination of incapacity. Springing POAs can add friction because banks or other institutions may require proof of incapacity.

3. Limits and special instructions

You can limit an agent’s powers in many ways. Examples include:

• Prohibiting sale of a primary home or specifying a sale price range.
• Excluding powers over particular accounts or investments.
• Restricting gift‑making authority or limiting gifts to certain people or amounts.
• Authorizing only specific transactions needed to handle bills or property management.

4. Agent duties and legal constraints

An Arizona agent must act in the principal’s best interests and follow the principal’s instructions. Common duties include:

• Acting in good faith and with care.
• Avoiding conflicts of interest and self‑dealing unless the POA expressly allows it.
• Keeping clear records and accounting for transactions.
• Following any restrictions in the POA document and applicable Arizona law.

Arizona law treats an agent’s misuse of authority seriously. Agents who act beyond their authority or breach fiduciary duties may face civil liability and other consequences.

5. How institutions treat a financial POA

Banks, brokerages, government agencies, and other institutions each have their own procedures for accepting a POA. Common practical points:

• Institutions may ask for an original POA, a certified copy, or a notarized copy.
• Some financial institutions use their own POA acceptance forms or require specific language.
• If the agent’s authority is unclear or contested, institutions may refuse to act until the dispute is resolved or a court intervenes.

6. Arizona statutes and forms

Arizona’s probate and estate statutes govern powers of attorney and related fiduciary duties. For the statutory framework, see Arizona Revised Statutes, Title 14 (Trusts, Estates and Protective Proceedings):
https://www.azleg.gov/arsDetail/?title=14. That Title includes the statutory provisions and rules that affect powers of attorney and agents’ duties. If you want statutory language or official forms, check the Arizona legislature and Arizona Courts resources.

7. Ending or revoking a financial POA

A POA typically ends when:

• The principal revokes it while mentally competent.
• The principal dies (then the agent has no authority; the estate moves to probate and the executor or personal representative takes over).
• The document specifies an expiration date or event.
• A court invalidates it for incapacity or because of abuse or fraud.

Helpful Hints

• Choose an agent you trust. The agent will have broad access to money and property if you give wide powers.
• Be specific in the document. List the powers you want the agent to have and those you want to restrict.
• Consider naming successor agents in case the first agent cannot serve.
• Decide whether the POA should be durable (effective on incapacity) or springing (effective only upon incapacity). Durability reduces delay; springing can cause practical obstacles.
• Discuss your plans with your agent and financial institutions ahead of time. That reduces refusals and confusion later.
• Keep copies of the signed POA in safe places and give authorized institutions a copy so they are aware of the agent’s authority.
• Keep records. An agent should document transactions and keep receipts to show decisions were made for the principal’s benefit.
• Review and update your POA periodically, especially after major life events like marriage, divorce, relocation, or changes in assets.
• When in doubt, consult a licensed Arizona attorney who can draft or review a POA tailored to your goals and ensure it complies with Arizona law.