Financial & Estate Planning

Image: Jerome Quek/

You may lose the ability to manage your own affairs as you grow older. Therefore, it’s necessary to have an incapacity plan in place.

Savvy incapacity planning usually includes the execution of a power of attorney, a document that names an agent who can sign checks, pay bills, and make other financial decisions on your behalf. Instead of a “regular” power of attorney, you may prefer:


Durable powers. A durable power of attorney can name a trusted friend, relative, or advisor to sign papers if you can’t make knowledgeable decisions. Such documents remain in effect if you become incapacitated.

Springing powers. These durable powers of attorney will go into effect only if one or more doctors state that you are incompetent or that you cannot perform some “activities of daily living,” such as being able to get dressed and go to the bathroom.

Although some legal fees are involved in executing a power of attorney, those costs likely will be modest. A durable power of attorney must be notarized but there’s no need to have it recorded anywhere. You get to choose the person you want to handle your affairs in case of incapacity.

A few other things to know:

A springing power won’t go into effect as long as you are competent.

You need to have absolute trust in the person you name as your agent.

Some financial institutions won’t accept your power of attorney because they require the use of their own forms. You should send a copy of your power to each of your banks, brokers, mutual funds, etc., to see if there will be any problem.


Some companies won’t recognize old powers. You should put an expiration date on the document and update it every year or two, in keeping with your current wishes.

Benefits Upon Passing of a Federal Employee or Retiree

Retirement Income Myths

Guidance Issued on Marijuana and Federal Employee Security Clearances

The Federal Retirement Deal (It’s a Very Good One!)

TSP Outlines Strings Attached to Upcoming Investment ‘Window’

Leaving Federal Service? Go Out With Class

When Should a Federal Employee Apply for Social Security Benefits?

Federal Retirement Mistakes to Avoid

Federal Retirement: When Age Isn’t Just a Number

FERS & CSRS: What Happens to Your Annuity if You Come Back?

2022 GS Locality Pay Tables here

FERS Retirement Guide 2022