Question 1

What Is a Power of Attorney?

Accepted Answer

A power of attorney (POA) is a powerful and commonly used estate planning tool.

There are different types of powers of attorney, and they can be used for making financial and medical decisions.

The principal determines the agent’s level of authority by clearly spelling out the terms in the document.

For example, your agent can have limited power to close on a property for you while you’re on an extended vacation.

Or you can give your agent broad authority to handle all of your financial affairs during your lifetime, even if you become incapacitated.

This second example refers to a durable power of attorney and is most often used in a person’s estate plan.

Question 2

Can I Revoke a Power of Attorney?

Accepted Answer

As the principal, you have the right to revoke a power of attorney as long as you’re physically and mentally able.

In some instances, like death and divorce, a power of attorney automatically terminates.

Question 3

When Should I Consider Revoking a Power of Attorney?

Accepted Answer

There are plenty of reasons for revoking a power of attorney. Maybe the agent is no longer able to fulfill their duty.

In more serious cases, a principal will want to terminate the agent’s powers because of a breach of fiduciary duty or financial elder abuse.

Question 4

How Do You Prove Power of Attorney Abuse?

Accepted Answer

Although your agent should be someone you trust, it’s not uncommon for agents to abuse their power.

Abuse can come in many forms, but it often occurs when the principal becomes incapacitated, and the agent takes advantage of the principal.

The clearest and easiest way to prove abuse of a power of attorney is through financial records.

Agents have a fiduciary duty to act in the principal’s best interest, which means they cannot personally benefit from the principal’s assets.

A paper trail showing the agent taking money from the principal’s account is evidence of power of attorney abuse.

Estate Planning