Powers of attorney are very useful legal documents. They help people prepare for future emergency scenarios. Having those plans in place is of the utmost importance should the unexpected happen. However, many people fear the abuse of the authority that they grant to others. Customizing powers of attorney to include special limitations may take some of the risk out of authorizing another person to handle financial and medical matters.
What limitations can give principals drafting powers of attorney more security?
1. Shared legal authority
Most powers of attorney nominate one agent or attorney-in-fact. Still, people do have the option of naming two or more individuals to share that authority. Two or more people who share legal authority can monitor each other for misconduct and push back against choices that may not be in the best interests of the principal.
2. Rules delaying the transfer of power
Powers of attorney usually take effect immediately upon the incapacitation of the principal. Some people choose to restrict powers of attorney by requiring that their incapacitation last a set amount of time before authority transfers to their selected agent.
3. Clear limitations on agent authority
Many financial powers of attorney are broad documents. Principals have the option of restricting their agents to certain functions. They could give them access to one specific financial account or responsibility for only certain needs rather than all of their financial affairs.
Properly limiting powers of attorney based on personal preferences and circumstances can make all the difference for vulnerable people. An attorney familiar with the challenges of estate planning can help a principal protect themselves with thorough, effective powers of attorney.
