Written by Benjamin Kingsley
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.
Generally speaking, a person does not need power of attorney to form a trust for someone else. The creator of a trust, known as the grantor or settlor, typically establishes the trust themselves or through their attorney. Power of attorney is not required for this process.
However, there are some important considerations regarding trusts and power of attorney:
1. If the person for whom the trust is being created is incapacitated or unable to make legal decisions for themselves, then power of attorney may be necessary to act on their behalf in establishing a trust. This would typically require durable power of attorney that remains in effect if the person becomes incapacitated.
2. Even with power of attorney, there may be limitations on the agent’s ability to create a trust for the principal, depending on the scope of authority granted in the power of attorney document. The power of attorney would need to specifically authorize the creation of trusts.
3. In some cases, a court-appointed conservator or guardian may have the authority to establish a trust for an incapacitated person, rather than using power of attorney.
4. It’s important to note that while power of attorney is not typically needed to create a trust for someone, it may be useful for managing trust assets or making changes to the trust later on, depending on how the trust is structured.
Given the complex legal implications involved in creating trusts and granting power of attorney, it is highly advisable to consult with an experienced estate planning attorney. They can provide guidance on the best approach based on the specific circumstances and ensure all legal requirements are met.
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.