When clients sit down to discuss creating a Durable Power of Attorney, the same concern comes up almost every time: "What if I give my daughter authority over my finances and she makes decisions I wouldn't want?"

It's a valid worry, but here's what many people don't realize: a Power of Attorney isn't an all-or-nothing document. You maintain significant control over what your agent can and cannot do with your money and property.

You Choose the Scope of Authority

The first decision you'll make is determining how broad or narrow you want your agent's authority to be. There are three main types to consider:

Limited Power of Attorney: This grants authority for specific, narrow tasks only. Maybe you need someone to handle a real estate closing while you're traveling, or manage one investment account during a medical procedure. Once that specific task is complete, the power ends automatically.

General Durable Power of Attorney: This covers broader financial management if you become incapacitated, but even here, you decide which powers to include or exclude. You're not signing a blank check.

Springing Power of Attorney: This becomes effective only after a doctor certifies that you can no longer make decisions for yourself. It adds a trigger so your agent's authority doesn't begin immediately upon signing.

Customize Powers Line by Line

Modern power of attorney documents include a detailed list of potential powers that you can approve or reject individually. A skilled Trumbull estate lawyer will walk you through each option and explain what each power means in practical terms. For example, you might:

• Allow bill paying and routine bank transactions

• Permit investment management but forbid real estate sales

• Authorize charitable giving with specific annual limits

• Exclude the power to change beneficiaries on your accounts

Build in Safeguards and Oversight

Co-agents: For protection, you may wish to have two or more people who must act together on major financial decisions. This creates a built-in system of checks and balances.

Regular reporting: Require your agent to provide quarterly financial statements to another trusted family member, your accountant, or attorney. Transparency helps prevent misuse.

Gift restrictions: Many people limit gifts to the annual tax-free amount or prohibit gifts altogether unless they match your established giving patterns.

Coordinate With Your Estate Plan

If you have a revocable living trust, your Power of Attorney should complement it, not conflict with it. An experienced estate lawyer can ensure these documents work together seamlessly. Ideally, the same person serves as your agent and successor trustee, or at least two people who can work together effectively.

Keep Your Documents Current

A Power of Attorney signed years ago may give authority to someone you no longer trust or who may not be the best choice today. Life changes (such as marriages, divorces, relocations, or family conflicts) are all reasons to review and update your documents with a qualified estate lawyer.

Additionally, some financial institutions are hesitant to accept older Power of Attorney documents, so keeping yours current helps avoid unnecessary complications when your agent needs to act.

Planning That Protects Your Interests

A well-crafted Power of Attorney allows someone you trust to step in during a crisis without giving them unlimited control over your financial life. The key is working with an experienced Trumbull estate lawyer who can explain your options and help you create a document that matches your comfort level and family dynamics.

If you need assistance creating or updating a Power of Attorney that protects your interests while giving your agent the authority they need to help you, we invite you to schedule a consultation with our office to discuss your specific situation.

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