Consider what would happen if you were suddenly incapacitated by an injury or illness. If you were in the hospital and unable to attend to your financial matters, you would need someone to pay your bills and balance your checkbook.

Financial Power of Attorney: This person can sign his or her name to checks, tax returns, contracts and legal documents for you. If this person signs any document it is just the same as if you signed it yourself.

This person should be someone who has his or her own finances in order and who can make good decisions when it comes to spending, saving, and investing money. In some cases it can help if the person lives near you, but if the most capable person in your life is not local, there are a number of tools to get this job done for you despite the distance.