Detailed Answer — What a Financial Power of Attorney Can Let an Agent Do in Missouri

Short answer: A properly drafted and executed financial power of attorney (POA) in Missouri can give an agent broad authority to manage your money, property, and business affairs — including paying bills, managing bank accounts and investments, handling real estate transactions, filing taxes, and dealing with government benefits — so long as the POA’s language authorizes those acts and the agent follows Missouri law and any limits you place in the document.

How Missouri law controls financial powers of attorney

Missouri’s rules for powers of attorney are set out in the Missouri Revised Statutes, Chapter 404 (Power of Attorney). The statutes describe what a durable POA is, the duties of an agent, and how a POA may be executed, modified, or revoked. See the chapter here: Missouri Revised Statutes, Chapter 404.

Common specific powers an agent can be given

Because a POA is a grant of authority from you (the principal) to another person (the agent), you can give narrow or very broad powers. Typical powers found in Missouri financial POAs include:

• Banking and accounts: Open, close, and access bank and brokerage accounts; deposit and withdraw funds; endorse checks; transfer money between accounts.
• Bill payment and household expenses: Pay monthly bills, utilities, mortgage or rent, and other ordinary household expenses.
• Investment management: Buy, sell, and manage stocks, bonds, mutual funds, and other investments; exercise voting rights for securities if explicitly authorized.
• Real estate transactions: Buy, sell, refinance, lease, or manage real property on your behalf if the POA specifically authorizes real estate acts.
• Tax matters: Prepare, sign, and file federal and state income tax returns; represent you before the IRS or Missouri Department of Revenue if the POA includes tax authority.
• Business and contractual acts: Operate, buy, sell, or manage business interests and enter into contracts for your businesses when authority is granted.
• Government benefits and retirement accounts: Apply for and manage Social Security, veterans’ benefits, pension distributions, and certain retirement accounts—note that some institutions place limits on agent actions with retirement or tax-advantaged accounts.
• Insurance and claims: Buy, maintain, or make claims under insurance policies and collect insurance proceeds.
• Litigation and legal matters: Start or defend lawsuits, engage attorneys, and settle claims if those powers are included.
• Gifts and transfers: Make gifts or transfers to others only if the POA specifically grants gift-making power and any statutory or institutional limits are observed.

Key limitations and special rules to know

• Durability and when authority starts: A POA is “durable” if it contains language that lets it continue even after you become incapacitated. You can also make a POA effective immediately or only upon a stated event (a “springing” POA). Institutions (banks, brokerage firms) sometimes refuse springing POAs or require a doctor’s statement confirming incapacity.
• Gifting, beneficiary changes, and major transfers: Many institutions and courts require very specific language to allow an agent to make gifts, change beneficiaries, or transfer assets into the agent’s own name. If you want an agent to make gifts or change retirement/insurance beneficiaries, include clear, express authorization in the document.
• Cannot make or change your will: An agent cannot sign a will on your behalf or change your testamentary dispositions. Wills are personal and typically require the principal’s own signature while competent.
• Fiduciary duties and limits: Agents owe duties to act in your best interests, avoid self-dealing unless explicitly permitted, keep accurate records, and obey any instructions in the POA. Missouri law imposes fiduciary duties on agents—review Chapter 404 for statutory rules and duties.
• Institutional policies and third-party refusal: Banks, brokerages, and government agencies may have their own requirements before recognizing an agent’s authority (e.g., requiring a notarized POA, specific forms, or refusing certain transactions). Social Security has its own representative payee rules separate from a general POA.
• Court supervision or guardianship: In some disputes or for particularly sensitive actions, a court may require supervision or may appoint a guardian/conservator instead of recognizing the agent’s authority.

Practical examples (hypotheticals)

Here are short examples showing how an agent’s powers might be used under Missouri law:

• Example 1: You gave a durable POA that authorizes banking and bill payment. After you become incapacitated, your agent accesses your checking account to pay mortgage, utilities, and hires a contractor to do necessary repairs.
• Example 2: Your POA explicitly authorizes real estate transactions. The agent sells a rental property to cover medical costs and deposits the proceeds into your investment account.
• Example 3: Your POA did not authorize gifts. A bank refuses when your agent attempts to transfer a large gift to a family member; the bank asks for additional documentation or a court order because of the risk of undue influence.

How to make sure your POA works the way you want in Missouri

1. Use clear, specific language: Spell out powers you want to give (e.g., “authority to sell real estate” or “authority to change retirement beneficiaries”).
2. Decide when it becomes effective: State whether the POA is effective immediately or only upon your incapacity and be aware lenders may prefer immediate-effect POAs.
3. Make it durable if needed: Include the durability clause so the agent’s authority survives your incapacity.
4. Include successor agents: Name one or more successor agents in case your first choice cannot serve.
5. Sign and notarize per Missouri requirements: Missouri law sets out execution formalities in Chapter 404. Many banks require notarized signatures; follow statutory procedures so third parties will accept the document.
6. Keep records: Direct your agent to keep receipts, bank statements, and a record of transactions to demonstrate proper stewardship.
7. Talk to your chosen agent: Make sure they understand your values, financial priorities, and where documents (bank statements, deeds, passwords) are stored.

When to consult an attorney

Talk with a Missouri attorney when you want to grant broad powers (especially gifting, real estate, or business-sale authority), when you expect institutions to be picky, or when estate-tax or complex business issues are involved. An attorney can draft language tailored to your goals and confirm the POA meets the execution requirements set forth in Missouri law (see Mo. Rev. Stat. Chapter 404).

Helpful Hints

• Include a durable clause so the POA remains effective if you lose capacity.
• Be explicit about gift-making authority and beneficiary changes; institutions often require concrete language.
• Choose a trustworthy, organized agent who will keep records and communicate with family.
• Provide a notarized original and certified copies to banks or brokers; keep copies with your estate documents.
• If you want the agent to handle retirement accounts or Social Security, check agency rules—those programs may limit or require separate appointments.
• Review and update the POA after major life events (marriage, divorce, move, new assets).
• Keep a list of account numbers, attorneys, and financial advisors so your agent can act faster if needed.
• If a bank refuses to honor a POA, ask what specific language or form they require and consider getting a court order if necessary.

Disclaimer

This article explains general information about Missouri financial powers of attorney. It is not legal advice and does not create an attorney-client relationship. For advice tailored to your situation and draft documents that comply with Missouri law, consult a licensed Missouri attorney.