Over half of American adults have given someone a power of attorney. A power of attorney allows someone to make decisions on your behalf as a fiduciary, and grants them a great deal of authority over your affairs. Designating an agent to act under a power of attorney is one of the first steps many individuals take in estate planning.
A power of attorney is a major fiduciary responsibility. You are giving someone access to your finances or the ability to make decisions regarding your health. Exercise caution and understand your own responsibilities when choosing an agent.
Generally, a power of attorney becomes void when you are incapacitated, but a durable power of attorney allows your agent to act on your behalf even when you are wholly unable to make decisions for yourself. Consequently, this sort of legal capability should only be given to someone you hold in complete confidence.
Here are a few things to keep in mind when you are selecting someone to be your agent under a durable power of attorney.
Thoroughly vet your agent, even if you choose a family member
While it may be obvious that some relatives aren’t qualified to handle your affairs in the event you are incapacitated, it is common to choose a close friend or family member and assume they are qualified because of the relationship. Be aware that even a parent, sibling, or child is not guaranteed to have the skills to be a qualified agent.
A durable power of attorney expires after you pass away
Even durable power of attorney has its limits. After you pass away, all powers of attorney expire, and your estate typically is handled by the executor of your will or, if you do not have a will, by an administrator appointed by the by probate court. Keep in mind that when you are designating an agent under a durable power of attorney, you are not granting them fiduciary power over your estate.
Your power of attorney is limited to what is outlined in the document
An agent acting under your durable power of attorney cannot act outside the scope of the authority granted to him or her in the document itself. If you are filling out a durable power of attorney agreement, meet with a legal professional to assist you in assigning every capability that a financial or medical representative may need in the event you are incapacitated. Additionally, be aware of what specific rights are granted to your agent, and keep a copy for your own records.
Protect yourself from future fiduciary disputes
Remember that an agent acting under a durable power of attorney has a duty to make decisions that are in your best interest. If you believe that a power of attorney for you or someone you love has been abused for an agent’s benefit, the attorneys of Gaslowitz Frankel can help. Our lawyers are knowledgeable and sympathetic to the unique issues a family faces when evaluating this kind of sensitive situation. Consult with the attorneys of Gaslowitz Frankel today.
