Hi Everyone,
My name is Jerry Antetomaso, one of the attorneys at Evans Fox. Today in our monthly series I would like to make a couple comments on powers of attorney. First, make sure you have a good POA as part of your estate plan. Secondly, make sure you trust your agent.
Without a good power of attorney, the alternative is to start a court guardianship proceeding to appoint someone to act on your behalf if you become unable to act for yourself. This is usually a difficult and costly proceeding that can be avoided by a well thought out POA.
There are dangers, though. Powers of attorney can be very broadly drawn to allow your agent the greatest latitude in the event you need tax planning, long term care planning or simply routine gifting. While an agent under a power of attorney can pay your bills for you, they can also alter your entire estate plan. That is both comforting and worrisome. Comforting if a trustworthy agent is looking out for your family’s interests. It’s worrisome if the agent violates your trust. While the agent is legally bound to act in your best interest, it is the legal equivalent of closing the barn door after the animals have fled. If the agent misappropriates assets, they may be unrecoverable.
A good estate attorney will discuss all the implications of powers of attorney with you and help balance your concerns as part of the planning process. If you have questions on powers of attorney or estate planning in general, please reach out. The estate attorneys at Evans Fox stand ready to help.