A power of attorney (POA} is oftentimes regarded as a valuable tool in estate planning.
However, if proper precautions are not taken, it can also be used as a "license to steal." A
power of attorney is essentially a document that grants someone the authority to act on your behalf. There are numerous types, including general, durable, and medical. When you create a POA, you give someone else the power to make financial, medical, and property decisions. It is crucial that you are aware of the risks and only make this important decision after careful consideration.
Oversight
Powers of attorney are not filed with the court system and are not required to have court
supervision or bonds, so there are little to no oversight measures. The lack of protection can make you vulnerable unless you take the extra step to include safeguards in your POA documentation.
Review
Using a one-size-fits-all template is hardly ever a good idea for legal documents, and a power of attorney is no exception. Consult with a professional before finalizing or signing your POA. Also, remember that regular review of your estate planning documents is vital to ensure they continue to serve your best interests. Your POA should be reviewed annually.
Diligence
Take your time when planning and reviewing your power of attorney. Any mistakes on a document this important can result in life-altering consequences. Give the law offices of yourself enough time to plan carefully, consider your options, and seek out the necessary guidance to finalize the document and to consider the safeguards that need to be in place.
ACCESS
Your Power of Attorney and Access to Your Personal Information
Once you've decided that a power of attorney is a good option for you, you will need to
consider how your chosen agent will access your personal information in the event the need arises. In this world of encrypted systems and virtual access, your agent will need a multitude of information to keep track of your affairs law offices while they're in charge.
Passwords and Usernames
If you don't already have one, create a lawyer and attorney list or database of usernames and passwords for online accounts. Be sure to keep this list in a safe place and that your agent knows how to access the list if necessary. Hard copies of bank statements, contracts, and any other legal documents may also be beneficial, so ensure they are in a place that your agent is aware of.
Safe Monitoring and Access
Depending on the type of POA you have and your agent's responsibilities, access to personal records may be required. The information your agent will be privy to is likely sensitive, so having an additional layer of protection is a good idea. Ask someone else you trust to keep an eye on your bank records, expenditures, and balances so any suspicious activity is caught as soon as possible. This friend, family member, or other trusted individual can also monitor the actions your agent takes to ensure they are acting in good faith and in your best interests.If your power of attorney knows that no one will review their actions that may lead to lower standards in protecting yourself aganst conflict of interests.
Susan Wasserman is an Attorney in the State of Ohio.
Wassermanlawoffices.com