A durable power of attorney (the “DPOA”) provides for another person to manage your finances (the Agent”) when you are no longer able to do so and is an important part of every estate plan. However, the DPOA could be misused by the Agent and certain language should be considered which could provide safe guards.
1. The Agent could be required to provide annual accounts to third persons (e.g. other family members) reflecting how the assets are being managed and used for your care.
2. Certain types of transactions (for example, sale of a house, withdrawals in excess of certain amounts) could require approval of a second person.
3. Authorize a third person to be able to revoke the DPOA (since you would not have capacity to do so). However, you should be aware this may result in court interaction and possibly guardianship proceedings.
4. Limit the ability or exclude entirely the ability of the Agent to make gifts of your assets and/or change your estate plan, including beneficiary decisions.
A carefully crafted DPOA is an important estate planning tool. However, the assistance of our experienced estate planning attorney can help reduce the risk of exploitation.
For more than 30 years, Attorney Lee A. Drizin has practiced in the areas of estate planning, probate, trusts, guardianship and real estate matters representing clients throughout the state of Nevada.
Drizin Law is providing this information for educational purposes only. It should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. This information is based on general principles of Nevada law at the time it was created and you should be aware laws frequently change. Moreover, the laws affecting you may differ depending on the circumstances. You should consult with a qualified attorney in your own state or jurisdiction concerning your particular situation. Review of this information does not create an attorney-client relationship.