Written by Benjamin Kingsley
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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 financial power of attorney (POA) does not have the inherent authority to change a trust. The ability of a financial POA to modify a trust depends on several factors, including the specific language in the POA document, the type of trust in question, and the applicable state laws.
A standard financial power of attorney grants the agent (also known as the attorney-in-fact) the authority to manage the principal’s financial affairs. This typically includes tasks such as paying bills, managing investments, and handling banking transactions. However, the power to alter or revoke a trust is usually considered a separate and more significant authority that must be explicitly granted in the POA document.
If the principal wishes to grant their agent the power to modify or revoke a trust, this authority should be clearly stated in the POA document. Some POA forms include a section where the principal can list additional powers granted to the agent, which could include trust-related actions. It is crucial to note that even if such power is granted, the agent must act in the best interests of the principal and in accordance with their known wishes.
Furthermore, the type of trust involved can impact whether a POA can make changes. For example, an irrevocable trust is generally designed to be unchangeable, even by the grantor. In contrast, a revocable trust may allow for modifications under certain circumstances. The trust document itself may also specify who has the authority to make changes and under what conditions.
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.