When you execute a power of attorney, you appoint another person to act on your behalf. The financial power of attorney is the most well-known type, but you can also appoint an agent to carry out many other tasks. For this reason, a power of attorney can be an essential part of estate planning – as long as your agent is trustworthy and dependable.
Your Agent Cannot Change Your Will
The short answer to the question of whether an agent can change your will is no. A power of attorney does not allow your agent to amend or change your will. While a power of attorney can grant significant authority to an agent, there are limitations. Keep reading to better understand what someone can do when you grant them a power of attorney.
What is Someone Allowed to Do with a Power of Attorney?
Power of attorney laws may differ between states, but the document typically grants your agent the authority to execute specific tasks, including:
- Managing financial accounts, including closing bank accounts and giving financial gifts.
- Managing real estate, including buying, selling, and transferring ownership of property.
- Creating and funding trusts.
- Retaining professionals such as lawyers, accountants, and social workers.
- Communicating with creditors and government agencies.
- Making decisions about any business you own.
- Caring for your pets.
- Handling your digital assets, such as email and cryptocurrency.
Limits on What Power of Attorney Allows
One of the most important concepts to understand about power of attorney is that your agent can make decisions only within the scope of authority outlined in the document. For instance, if your agent wants to sell your car on your behalf, they must present the power of attorney at the Department of Motor Vehicles to prove that the document grants them this authority.
This means you can set your own limits on what the power of attorney allows. If a specific task is not described in your power of attorney, the agent cannot make a decision regarding that matter. You can also prevent your agent from being able to take certain actions, such as accessing your safe deposit box, by including that in your power of attorney document.
Another option is to limit your agent’s authority to a specific time frame, which can be helpful if you’re going to be traveling for an extended period or if you are temporarily unable to conduct business due to illness or injury. Additionally, you can create a power of attorney for a specific action, such as signing closing documents on the sale of the property if you cannot attend.
How to Handle Potential Abuse Issues
Granting your agent a power of attorney does not mean they can steal or mismanage your assets without consequences. Your agent owes you a duty of loyalty, meaning they are required to act in your best interests or in a manner consistent with how you would act. If they violate this duty, they can be held liable both civilly and criminally. If you believe your agent has breached this duty, you should contact an attorney specializing in estate planning or elder law, the police, or your financial institution (if the issue relates to your bank account).
If you wish to revoke your power of attorney for any reason, you can provide written notice to the person named as your agent. You should also provide a copy of the written revocation to any bank or financial institution where the power of attorney is registered.
Frequently Asked Questions (FAQs)
Where can you obtain a form to appoint, revoke, or change a power of attorney?
Since a power of attorney can grant broad financial power and can easily create an environment for misuse of that power, many states have legally required language to include in your power of attorney document. Additionally, there are likely rules about how to execute the power of attorney. In some states, forms that do not comply exactly may be invalid. While you might be able to find common language online, it is always best to have an attorney familiar with your state laws draft your power of attorney document.
What
What is the duration of the power of attorney?
You can choose the expiration date of your power of attorney, but you can also opt to make your agent’s authority unlimited, which is also known as a durable power of attorney. Financial institutions may sometimes attempt to reject the authority of an agent under a power of attorney, especially if a significant amount of time has passed since the execution of the document. However, state laws generally require financial institutions to accept these powers of attorney as long as they are properly executed.
Are there time limits for powers of attorney in states?
Some government agencies may impose time limits on the validity of a specific power of attorney for that agency’s business. For example, the California Tax Commission states that the duties of a power of attorney end after six years. These limits are another reason why you should consult an estate planning attorney in your state to answer this question and prepare the power of attorney that suits your needs.
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Sources:
- American Bar Association. “Wills and Estates.”
- New York City Bar Association. “How To Change or Revoke Your Will.”
- State of California Franchise Tax Board. “Power of Attorney.”
Source: https://www.thebalancemoney.com/can-a-power-of-attorney-change-a-will-5666974
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