• 15
  • July
    2010

In my last post, I talked about how a power of attorney is typically used, and about some of the things the "attorney in fact" typically cannot do under the powers granted to them by the power of attorney.

This time, I want to talk about potential abuses of powers of attorney. Or, more specifically, avoiding situations that could be considered abusive, or assumed to be abusive of the power of attorney.

Powers of attorney are useful and powerful estate planning tools, as any Florida estate planning lawyer will tell you. However, they can also cause some problems. The number one problem they can lead to is litigation between family members.

Here are some things to consider in order to avoid litigation:

  • Make sure you really know and trust the person you are appointing as the attorney in fact. Relatives may be better choices than non-relatives. But, in some cases, it may be better to appoint a non-relative. Think in advance about the advantages and disadvantages of appointing each person you are considering.
  • Review your power of attorney on a regular basis. As years go by, your original plans and intentions may change. Your relationships with your family members or the person appointed as your attorney in fact may change. It is important to review your estate planning documents, including your power of attorney, to make sure they continue to reflect your current wishes for the future.
  • Family members who are appointed as attorneys in fact should always let the other family members know about the power of attorney and its terms, and keep the family members advised about everything that is done under the power of attorney. If the power of attorney is secret, it can lead to assumptions that the attorney in fact has/had undue influence over the principal.
  • Old tensions between family members can well up as parents become weakened or disabled. Secrecy will probably make these tensions worse, not better. Avoiding secrecy will very likely help avoid legal battles and attorneys fees.

Source: The Tennesseean "Put 'power of attorney' only in hands you trust" June 22, 2010