Thinking of creating a Power of Attorney?
Be careful!
There are several kinds of powers of attorney, each of which have different features and confer different powers. However, what they have in common is that they put your agent (technically called your “Attorney-in-Fact”) in your shoes and give your agent the power to act as if he or she were you.
This can have serious and often irreversible consequences. Ultimately, a Power of Attorney can be used to deprive you of everything you own.
This can include cleaning out your bank accounts, selling your personal possessions, and selling your house.
In all honesty, there is no way to guarantee that your agent will not do one or more of these things. However, there are steps you can take to reduce the likelihood that you will be victimized. These include:
• Appoint only an agent who is eminently trustworthy (although this may not be enough).
• Monitor your accounts frequently to detect any unusual activity (although this may not be enough).
• Limit the powers granted and the duration of the Power of Attorney.
• Require that your agent give you frequent accountings of all activity he or she has engaged in pursuant to the Power of Attorney.
• Require your agent to keep records of all uses he or she has made of the Power of Attorney and all persons or entities to whom copies of the Power of Attorney have been given.
• Only create Powers of Attorney when really necessary.
• Ideally, have your Power of Attorney created by a lawyer and ask for and pay heed to any counsel given to you by your lawyer.