Show Notes
Chris’s Summary
Jim and I discuss five common power of attorney mistakes flagged in an estate planning attorney’s article, along with points from Peter Scott. We cover naming an alternative agent, the friction a springing agency can create, gifting authority that is either absent or overly broad, notifying old agents and financial institutions after a change, and the boilerplate real estate language that title companies may refuse to accept.
Jim’s “Pithy” Summary
Chris and I go through an article timestamped December 2022, one of the 72 sitting in my iPad folder, where an estate planning attorney lists her five biggest mistakes to avoid with a financial power of attorney. I’m not an attorney, nor do I play one on TV, but I’ve been in this industry 27 going on 28 years and we deal with these forms quite often. I read her five, opine on them, and Chris weighs in after each. I also bring in Peter Scott, who shared with us on this show before he retired, because Pete flagged two of these as the big ones.
Her list covers backup agents, springing powers, gifting authority, changing agents, and real estate. I used to be a fan of springing powers. I’m not anymore, and it was Pete who turned me around on it. I had never thought of it that way before. Gifting is the one I think gets overlooked most, and I use my own mother’s document to explain why, because what wasn’t in hers had me beside myself. It involved my sister, my niece and nephew, and a lot of college tuition. Chris adds that locking a document down too tightly can backfire just as badly, and suggests what to do with wishes that don’t fit into legal language.
We also get into why banks and financial institutions often refuse older forms, the Colorado law Pete said he could fly a 747 through, and two clients whose documents came from the exact same software, where one attorney took the time to do the job and the other just clicked print. Pete’s warning on real estate was about boilerplate language, and Chris explains why the address you use every day may not be the one that matters.
The post Power of Attorney Mistakes: EDU #2637 appeared first on The Retirement and IRA Show.
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