Tips in Creating Your Power of Attorney
The Wall Street Journal recently ran an article about Durable Powers of Attorney and their potential for abuse. The article set out several recommendations to ensure your Power of Attorney will be honored and adhered to, as well as tips to minimize the potential for fraud. Among the recommendations:
- Use different Power of Attorney documents for the different states in which you may reside;
- Require regular reporting of financial transactions and investments to remaining family members;
- Have all children agree or consent to certain major financial decisions;
- Check with your bank or other financial institution to make sure the form will be honored; and
- Limit access or the original Power of Attorney document.
Given the potential for abuse in this area, it is almost always a good idea to build in more safeguards than less.
