The New Power of Attorney Law and How It Affects You, Part 3 of 3

In my last two blogs, I have discussed Florida's relatively new Power of Attorney law and the important steps you must take to make sure you are protected.

Even though your older POA documents were grandfathered in by the new law, it is still important to update your Power of Attorney document.  Some financial institutions will be hesitant to work with the old law. To keep your financial institution satisfied that you have covered all of your bases, make sure that your Power of Attorney agent’s authority to conduct banking transactions is initialed or signed.  Bank tellers do look for initialed provisions and question those that are not.  This could lead to delays, which is something you want to avoid whenever possible when conducting financial affairs.

To summarize what you can do to make sure you are protected when dealing with a Power of Attorney:
1. Be aware of reasons for new law
2. Know that POAs are now more intricate and comprehensive
3. Know that it will take more time to get done.

If I can assist you further with your Power of Attorney or Durable Power of Attorney needs, please don't hesitate to contact me.

The New Power of Attorney Law and How It Affects You, Part 2 of 3

In my last blog, I introduced you to Florida's still relatively new Power of Attorney Law. This week, I would like to cover a couple of the risks in Power of Attorney documents and how to avoid them.
Did you know that your agent is not obligated to fulfill all of the powers granted by you in the Power of Attorney document?  This can leave areas of your affairs unattended.

For example, if you grant agent banking and investment powers, but the agent only wants to handle banking, this could leave your investments unsupervised. The solution is to put a simple reference int he document that “my agent has authority to conduct banking transactions.”  That will allows agent to conduct all of the banking transactions typical for a Power of Attorney.  You can do the same with your investment strategy.

Also, if you have a Trust established, or will be doing so, you want to make sure that the authority of your agent to amend the Trust is specifically enumerated in your Power of Attorney document and that it is  signed or initialed by you.  If the trust document itself (a separate document) does not allow for amendment by your agent, you would need to update the trust document.

The above steps will give you peace of mind when designating someone you trust to handle your financial affairs through Florida's Power of Attorney law.

If I can assist you further with your Power of Attorney or Durable Power of Attorney needs, please don't hesitate to contact me.

The New Power of Attorney Law and How It Affects You, Part 1 of 3

Just what is a Power of Attorney? It is a document that allows your designated agent to manage your medical, financial or property affairs.  This is necessary when you or loved one are unable to conduct certain affairs, if you have a complicated financial situation or if you are elderly or disabled.

A Power of Attorney can be misused. For example, Back in 2011 there was a news story about a 69-year-old Florida man being arrested and accused of buying himself a Lamborghini with money that belonged to a 97-year-old woman.  He was supposedly acting as her Power of Attorney!

It is because of cases like that, that motivated the Florida Legislature to pass a more strict Power of Attorney law that same year.  Although the new law would not prevent cases like the one above, it will make it easier to recover assets, since client’s rights and agent’s duties are more clearly defined.

Also, this year, the legislature passed a law giving law enforcement more tools to prosecute those who abuse our elderly.

The 2011 Power of Attorney Law:
1. Has more protections for consumers.
2. Financial institutions must accept POAs within a reasonable period and not waste time
3. Requires more procedures and time to complete POA document
4. Must be signed before two witnesses and notary

Make sure your attorney is familiar with the Power of Attorney law.  If not, there is a danger you could have an invalid document.

If I can assist you further with your Power of Attorney or Durable Power of Attorney needs, please don't hesitate to contact me.