You have two options here: you can wait until your Mother passes away (the POA dies with her) and then ask to be appointed as the fiduciary or personal representative of her estate and then demand that he account for his dealings. But at that point in time he may have dissipated - used up or squandered - all of her funds and assets.
Full Answer
You can write a POA in two forms: general or limited. A general power of attorney allows the agent to make a wide range of decisions. This is your best option if you want to maximize the person's freedom to handle your assets and manage your care.
A "Limited Power of Attorney" gives the agent authority to conduct a specific act.
The only time a valid POA is not allowed to change a beneficiary is when the life insurance policy has an irrevocable beneficiary. It is a good idea to set up your power of attorney with a person you completely trust. Do it with all the legal language and specifications that make the power as specific as possible.
The "principal" is the maker of the Power of Attorney - the person who is delegating authority to another. This is the person who is allowing someone else to act on his or her behalf.
General Powers of Attorney A general power of attorney allows an agent to make numerous decisions and perform a variety of acts on behalf of the principal, including legal and financial activities.
If the agent is acting improperly, family members can file a petition in court challenging the agent. If the court finds the agent is not acting in the principal's best interest, the court can revoke the power of attorney and appoint a guardian.
The POA cannot change or invalidate your Will or any other Estate Planning documents. The POA cannot change or violate the terms of the nominating documents -- otherwise they can be held legally responsible for fraud or negligence. The POA cannot act outside of the Principal's best interest.
A will won't supersede the beneficiaries listed on a life insurance policy. In most cases, the beneficiary listed on the life insurance policy has the right to claim the payout regardless of the instructions in the will.
Which of the following best describes durable power of attorney? It is a written appointment of agency designed to be effective even though the principal is incapacitated.
The difference between the Debit and the Credit columns in the Income Statement section of the work sheet equals: Net income (or net loss).
When you act as someone’s power of attorney the law refers to you as the “agent” and the person for whom you are acting as “the principal.”. In Pennsylvania your duties as agent are specified in the Probate, Estates and Fiduciaries Code.
So you should maintain careful and complete records of all steps you take on behalf of the principal. It is important that you retain receipts and maintain good records of all checks written, other disbursements made, all liabilities of the principal with which you have involvement or knowledge, all income and other assets you receive, and all actions you take on behalf of the principal. The maintenance of such records minimizes the possibility that you will be exposed to liability. It may make sense to hire an accountant to help you set up the books.
Serving as Financial Power of Attorney for a parent or friend is serious business. You may see it as just helping mom pay her bills. But the law imposes many significant legal duties on someone who acts as power of attorney for another.
Throughout Connecticut, people seek out the Baker Law Firm because of our extensive experience in estate planning, administration and probate. We are here to help attorneys and other people appointed through a power of attorney comply with their accounting requirements, especially in instances where a breach of fiduciary duty has been alleged. If you need help, we encourage you to call 203-885-1344 to schedule a confidential consultation at our Danbury law office.
Connecticut law allows any interested party to petition the probate court requesting that the attorney in fact appointed under a power of attorney account for all activities to ensure that all assets and income of the principal have been accurately and properly received and accounted for. The accounting will also provide interested parties details on how that income and those assets were expended. The accounting will provide details of all expenditures, which must be for the sole benefit of the principal.
If you are an interested party, our attorneys are able to prepare and file the appropriate motions with the probate court to get an accounting ordered, to analyze the account and convince the probate court to remove the agent, and to seek full reimbursement if there has been inappropriate conduct on the part of the agent.
The attorney in fact is a fiduciary and is held to an extremely high standard in taking care of the financial affairs of the person who gave him or her a power of attorney, for the sole benefit of that person. If there was inappropriate conduct by the attorney in fact, the probate court has the ability to terminate the power of attorney and to order the attorney in fact to reimburse the principal.
As a matter of law, an Executor or trustee of a trust owes a fiduciary duty to the beneficiaries of the estate or the trust, respectively.” “An Executor has a fiduciary duty to act in the best interests of all the beneficiaries under the Will .” “The most fundamental duty owed by an Executor to the beneficiaries is the duty of loyalty, and the Executor is obligated to deal impartially with all beneficiaries.” An Executor cannot use his/her position to further his/her own personal interests.” Similarly, one who is both a Power of Attorney for another and is designated the Executor under that individual’s Last Will owes a fiduciary duty to the estate and to the estate’s beneficiaries.
A court may compel someone who served as a Power of Attorney on behalf of another to account for monies expended during the time he or she held the Power.
The decisions your attorney-in-fact make on your behalf can affect your financial future, including your eligibility for employment, housing, and credit. It can also affect your military career, including your eligibility for security clearance.
A power of attorney document allows someone that you select (your “attorney-in-fact” or “agent”) to act on your behalf in financial matters.
When a person acts as your attorney-in-fact, that person can do financial business as though he or she is you. For example, your attorney-in-fact might buy a car or house in your name or might withdraw money from your bank accounts.
Revoking the power of attorney. When you no longer need an attorney-in-fact, for example, after returning from deployment, you can revoke the power of attorney.
Tax Information Authorization stays in effect until you revoke the authorization or your designee withdraws it.
There are different types of third party authorizations: 1 Power of Attorney - Allow someone to represent you in tax matters before the IRS. Your representative must be an individual authorized to practice before the IRS. 2 Tax Information Authorization - Appoint anyone to review and/or receive your confidential tax information for the type of tax and years/periods you determine. 3 Third Party Designee - Designate a person on your tax form to discuss that specific tax return and year with the IRS. 4 Oral Disclosure - Authorize the IRS to disclose your tax information to a person you bring into a phone conversation or meeting with us about a specific tax issue.
A Tax Information Authorization lets you: Appoint a designee to review and/or receive your confidential information verbally or in writing for the tax matters and years/periods you specify. Disclose your tax information for a purpose other than resolving a tax matter.
Power of Attorney stays in effect until you revoke the authorization or your representative withdraws it. When you revoke Power of Attorney, your representative will no longer receive your confidential tax information or represent you before the IRS for the matters and periods listed in the authorization.
Authorize with Form 2848 - Complete and submit online, by fax or mail Form 2848, Power of Attorney and Declaration of Representative.
Low Income Taxpayer Clinics (LITCs) are independent from the IRS and may be able to help you. LITCs represent eligible taxpayers before the IRS and in court. To locate a clinic near you, use the Taxpayer Advocate Service LITC Finder, check Publication 4134, Low Income Taxpayer Clinic List PDF, or call 800-829-3676.
Your Tax Information Authorization is recorded on the Centralized Authorization File (CAF) unless Line 4, Specific Use is checked. The record lets IRS assistors verify your permission to speak with your representative about your private tax-related information.