Monday, May 23, 2011
Take care with your financial powers of attorney! In 2009, MetLife estimated that $2.6 billion was lost by elders because of fraud committed by those holding their powers of attorney. Assets held in your living trust cannot be controlled by a financial (durable) power of attorney. Only assets held in your sole name can are subject to your power. The best use of a power of attorney is to enable your agent to transfer assets to your living trust if you become disabled, not as an instrument to govern all your financial matters. Once conveyed to your trust, assets can be managed by your successor trustee, without court supervision, if you become disabled.