Although powers of attorney (POAs) are an incredibly popular option for many people planning for the twilight years of their lives, the New York Times reports that in many cases POAs do not provide the best solution, partly because of their ubiquity. Legal professionals have stated it is not at all uncommon to find that a bank will refuse to honor a POA for any number of reasons in efforts to minimize their liability in any potential schemes to commit elder fraud. However, with similar alternatives to POAs (such as establishing guardianships or revocable trusts) being more complex or costly, the simplicity of a POA remains highly attractive.
See Paul Sullivan, “Power of Attorney Is Not Always a Solution,” NYTimes.com (Aug. 22, 2014).
Posted by Morgan Yuan, Esq., Associate Editor, Wealth Strategies Journal.