Monday, August 25, 2014
For many individuals, power of attorney is an inexpensive estate planning tool that allows for a trusted loved one to be able to take a decision making role if the person becomes unable to do so for themselves. However, the fear of elder abuse being committed through a power of attorney has caused many banks to create detailed rules for honoring the designation of power of attorney. Problems can occur when individuals go to a bank to enforce a power of attorney and find out for the first time that the bank requires the document to be on specific paper or the drafter used a variation of their name that does not match their official forms of identification. One possible solution is a revocable trust, which banks are more comfortable with.
See Paul Sullivan, Power of Attorney is Not Always a Solution, The New York Times, Aug. 22, 2014.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) and Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.