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Two important steps to getting your financial affairs in order are setting up power of attorney (POA) and beneficiaries.

“A power of attorney isn’t just good for elderly people. We always say once you’re 18 you should actually have one,” said Journey Kroening, personal banker at Nicolet Bank in Medford.

In general, a POA allows an agent to access funds in a bank account to support the account owner when the owner is unable to make decisions or take care of themselves. For example, the POA may pay the bills of a senior who is not capable of remembering to regularly make payments.

When someone chooses a POA, they are giving that individual access to their bank account. “You have to have that trust,” Kroening said. She explained many people choose a spouse, sibling, or close friend.

POA forms are customizable. People are able to specify what they want their POA agent to be able to do. “You can be specific or you can be very vague. So it’s definitely up to the comfort of the person requesting the POA,” Kroening stated.

A safeguard on many POA documents is the agent can not change beneficiaries on the account. This can, however, be allowed should the person requesting the POA want the agent to have the power to change beneficiaries.

People should consider getting a POA when they are young because, “You can’t get POA if you are incapable of making decisions,” per Kroening. While there are ways to have a person act on a person’s behalf without a POA, having a POA streamlines the process should the account holder need support.

Notably, a POA deceases with the person who requested it. The individual with POA will not be able to access the account once the account holder passes away.

Consequently, it is necessary for people to also have beneficiaries named on their bank accounts. A beneficiary is someone who will get a specified amount of money from the account once the account holder passes away.

“Everyone should have a beneficiary,” Kroening said. She noted she recommends everyone who is age 18 and older to list a beneficiary, or beneficiaries, on their account. That way, their funds go where they choose.

If a person does not have a beneficiary, the funds from the account may go through probate. It commonly takes considerably longer for the funds to be passed on when they go through probate instead of being directly given through a beneficiary.

To make sure everyone has their money going where they wish after they pass, Kroenig advised “double checking to make sure [your beneficiary] is set up.”