12 Ways to Make Sure Your Power of Attorney does not rip you off
Appointing a Power of Attorney (PoA) is a crucial step in ensuring your affairs are managed if you become unable to do so yourself. However, it's essential to take measures to prevent any misuse of this power. HazeLegal will give you 12 tips to ensure your PoA acts in your best interests and does not take advantage of their position.
1. Choose Someone Trustworthy
Select someone with a proven track record of honesty and reliability. This person should have your best interests at heart and a strong moral compass.
2. Clearly Define Their Powers
Be specific about what powers you are granting. Clearly outline what they can and cannot do in the legal document to avoid any misunderstandings.
3. Set Up Dual Agents
Consider appointing two people to serve as co-agents. This way, they can keep each other in check and prevent unilateral decisions.
4. Regularly Review the Arrangement
Schedule regular reviews of your PoA arrangement. This allows you to reassess their performance and make changes if necessary.
5. Require Detailed Record-Keeping
Ensure your PoA keeps detailed records of all transactions and decisions made on your behalf. This accountability helps deter misuse.
6. Involve a Third Party
Incorporate a trusted third party, such as a lawyer or accountant, to oversee significant financial decisions. Their involvement adds an extra layer of oversight.
7. Limit Financial Powers
Consider limiting the financial powers of your PoA to specific tasks or amounts. This can minimize the risk of large-scale financial abuse.
8. Set Up a Monitoring System
Implement a monitoring system where another person or entity, like a family member or professional advisor, reviews the actions of your PoA regularly. You can make this an express direction on your Power of Attorney.
9. Use a Revocable PoA
Opt for a revocable PoA that you can cancel at any time if you suspect misuse or if your circumstances change. And consider having the starting date either when you lose capacity, or straight away, where you can monitor their actions.
10. Communicate Your Wishes
Have a clear conversation with your PoA about your values, preferences, and expectations. Ensure they understand your wishes thoroughly. The best way to do this is to leave instructions in our Digital Vault, which will be sent to them once you lose the capacity to make decisions for yourself
11. Get Professional Advice
Consult a lawyer when drafting your PoA document. Professional advice can help ensure all legal safeguards are in place.
12. Inform Key People
Let close family members and friends know who your PoA is and their responsibilities. This transparency helps create a support network that can detect and prevent misuse.
Creating a Power of Attorney is a significant decision. By taking these steps, you can protect yourself from potential abuse and ensure your affairs are managed according to your wishes. Regular communication and clear documentation are key to maintaining control and peace of mind.
Life is full of changes, so it's crucial to have legal experts who can protect you when needed.
Contact WebWills today. We'll guide you through the steps to ensure your wishes are followed.
DISCLAIMER
This is a commentary published by WebWills for general information purposes only. This is not meant to be taken as particular advice. You should seek your own legal and other advice for any question, or any specific situation or proposal, or get in touch with the writer at http://webwills.com.au before making any final decision. The content also is subject to change. A person listed may not be admitted as a lawyer in all States and Territories.
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