How an Agent in Your Power of Attorney should Manage Your Money

The power of attorney is most welcomed by many people because of its function to appoint a person to make decisions on your behalf. In case you get sick or you go out of the country and there would be important errands or transactions to be done, you could be sure someone would appropriately takeover to make sure everything is in place. If you are considering getting a power of attorney, you should make sure you are appointing the right agent or attorney-in-fact (the person who would be given authority to make or execute decisions for you).

One usual issue about power of attorney and appointment of agents is the way the person manages or handles finances. In the power of attorney, especially for the ‘durable’ one, that same agent is given the full authority to manage and handle all your money and assets in case you get mentally incapacitated. That is why many people choose to appoint their spouses or relatives as agents. But there are still issues and conflicts arising in such situations.

How could you make sure your agent would be using the authority well? First, you should appoint a person who you have already proven to be trustworthy and reliable. He/She should be highly ethical so as not to defraud you or steal money from you. Second, that person should have the ability to prudently and effectively manage finances. If not, he/she should be humble and wise enough to seek assistance from experts and professionals to make sure your finances are well managed and handled.

To be able to handle and manage your finances better, your agent must always decide to keep his/her own money separate from yours. Thus, there would be no confusion. The agent must not be personally involved in any transaction where he or she is representing your interests. For example, he/she must not be a stock investor who would gain more from buying your shares in a company in an inappropriate manner or pricing. The agent should be firm in keeping accurate all records pertaining to all transactions he/she gets into on your behalf.

You could have the option not to include specifications or instructions that would give your agent the permission to transfer to himself/herself any of your property or bank account. The law usually allows the agent to transfer your assets to your spouse (if your agent is not your spouse). However, the law does not allow him/her to transfer any of your properties to any other individuals, even your children.

Always seek the assistance and guidance of your private attorney when making or drafting the content and provisions of your power of attorney. It is more recommended that you do so especially if the document would involve your properties, savings, and income. You could still safeguard your assets even if you get into a power of attorney. That is if you could be more wise and prudent in making decisions.

Other Power of Attorney and Your Life Articles

Important Considerations When Creating a Financial Power of Attorney
How an Agent in Your Power of Attorney should Manage Your Money
Medical Issues And Power Of Attorney
Power of Attorney: What to Consider in Choosing an Attorney-in-Fact
Frequently Asked Questions about Power of Attorney
Power Of Attorney And Its Validity
What are the Different Types of Power of Attorney? 
What Is The Durable Power Of Attorney For?
Essential Information about Durable Power of Attorney
What Power of Attorney Is
Watching It: Power Of Attorney And Problems
Choosing The Best Agent For Your Power Of Attorney
Power of Attorney: Should You Get One?
Choosing an Agent for your Power of Attorney
Preparing for Your Future? Consider a Health Care or Medical Power of Attorney
How Much Power of Attorney Should You Give to Your Attorney-in-Fact?
Power of Attorney: A Brief Overview
Four Main Types of Power of Attorney
The Pros And Cons Of The Power Of Attorney
Power of Attorney 101
Seven Steps in Preparing a Power of Attorney
An Insight On The Different Types Of Power Of Attorney
Understanding The Power Of Attorney
Types Of Power Of Attorney
Why Do You Need to Prepare a Power of Attorney?

Power of Attorney and Your Emotions Videos

Site Index Page * Home Page * Privacy Policy * Conditions * Disclaimer * Contact

Disclosure: Advertisements are placed on this website to offset the cost of maintenance and to keep this site free for everyone to use. Owners of this website will receive compensation for products and services purchased through featured advertisements.
All claims of actual user results should be considered as a-typical.

© 2011 Copyrighted by OkiDoki - All Rights Worldwide Reserved!
Site and articles redirected and transformed by Hans Peter M. Mul