A Guide to Financial Authority and Charitable Giving

When someone you love passes away or can no longer manage their own financial affairs, you may find yourself stepping into a new role. Sometimes that means handling finances, legal decisions, or final wishes. Other times, it’s about finding meaningful ways to celebrate their life, like donating in their name to their favorite charity.

Both paths involve honoring someone with care, intention, and integrity. Whether you’re acting as their financial authority or simply want to keep their legacy alive, here’s how to make thoughtful choices in their memory.

What Does It Mean to Have Financial Authority?

If you’ve been named someone’s financial authority or their next of kin, you may be legally responsible for making decisions on their behalf. These roles often include:

• Power of Attorney (POA): Allows you to act on someone’s behalf while they are still alive.
• Executor: Carries out the instructions in someone’s will after they die.
• Trustee: Manages a trust that may continue after death.

Each of these roles has legal responsibilities and limits. As a financial authority, you must act in the person’s best interest and handle their money carefully. That means paying bills, maintaining records, and ensuring their finances are used according to their wishes. While many family members may have opinions about what to do with a loved one’s finances, these roles have specific legal rights and responsibilities.

Steps to Use Financial Authority Respectfully

Being someone’s financial decision-maker can feel overwhelming. But it’s also a way to show deep respect and love. Here are a few key ways to use that authority with care:

• Know your boundaries: Power of Attorney ends at death. An executor only steps in after someone has died.
• Follow instructions closely: Wills, trusts, and legal documents provide guidance. Don’t guess; read carefully.
• Document everything: Keep records of every transaction to protect yourself and show accountability.
• Avoid mixing finances: Never blend your money with theirs, even for convenience.
• Stick to their values: If you’re unsure what they would want, think about how they lived, what they cared about, and what mattered most to them.

How to Donate to a Charity in Someone’s Name

One of the most meaningful ways to honor a loved one is to give to a cause they believed in or that reflects their values. Donating in someone’s name allows their legacy to live on through action, not just words.

Here’s how to make it count:

• Choose a cherished cause: Consider what your loved one valued, such as education, animals, veterans, or the environment, and find a reputable organization that aligns with that.
• Make it personal: Many nonprofits allow you to dedicate your donation "in memory of" someone. Some even notify the family with a card or email.
• Include it in an obituary or memorial: If you are planning their memorial, you can add instructions for others, such as "In lieu of flowers, donations can be made to [Charity Name] in [Name]’s memory." 
• Give in other ways: Fund a scholarship, sponsor a bench, plant trees, or host an annual fundraiser.

It’s not about the dollar amount. It’s about carrying forward the love they had for the world.

Can You Donate on Someone’s Behalf as Their Financial Authority?

This is a common question, and an important one.

If you’re a Power of Attorney:

• You can only make donations if the person is still living and has explicitly authorized charitable gifts in the POA document.
• If it's not listed, you may not have legal grounds to use their money for donations, even with good intentions.

If you’re an executor:

• You must follow the will. If a donation isn’t specified, you can’t make one using estate funds unless the court or all beneficiaries agree.

If you’re unsure:

• Make a personal donation in their name using your personal funds. This will still honor them beautifully and avoid legal complications.

Save on End-of-Life Planning for You

Whether you’re managing someone’s finances or finding ways to honor their memory, every thoughtful choice matters. From fulfilling legal responsibilities to donating in their name, your actions carry their values forward.

To help you take the next step, we’ve partnered with Trust & Will to offer 10% off their online estate planning platform when you choose a prepaid cremation or burial plan with any of our providers. Read Top 10 Reasons to Have a Will and click on the link in the article to get started. 

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