What
Is A Power Of Attorney?
A power of attorney gives legal rights
and powers
to someone who will act on your behalf in financial, business, or other
matters when you cannot act for yourself.
What
Can Someone Holding Power Of Attorney Do?
The person holding power of attorney
can withdraw
money from bank accounts, trade stocks, pay bills, sign tax documents,
sell real estate and cash checks to the extent authorized in the power
of attorney. The money must be used for your benefit. In Pennsylvania,
the person receiving a power of attorney is now called an "Agent".
Can
the person with power of attorney give gifts of your money to himself
or herself or to others in my family?
This depends on the wording in the power of
attorney and
on state laws. Some state statutes require gift-making powers to be
specifically stated in the document. A well-drafted power of attorney
will give the right to make gifts if you want to provide that
privilege. The power of attorney may limit the amount of gifts or the
number of people who receive them. The agent acts in a fiduciary
capacity and all actions under the power of attorney must be in your
best interest. Ask your lawyer to explain this in detail.
Can
the holder of a power of attorney be held liable for his or her actions?
Yes, but only if the person acts with willful
misconduct or gross negligence. If the individual keeps your best
interests in mind, he or she will not incur any liability.
Can
I fire the person holding power of attorney? Can I change my power of
attorney?
Yes, you may revoke the power of attorney at
any time
by putting the revocation in writing and sending this to the agent. It
can be just a simple letter.
"Lawyers Who
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