![]() ![]() Something like “authority to take money as necessary” will not typically be enforceable. The grantee can authorize most forms of property transfer, as long as the assets are theirs to give and as long as the authorization is specific. However, a power of attorney can transfer assets to themselves if they have specific written consent from the grantee. In that case the sale itself would also likely be declared null and void, and you would likely owe the purchaser both a refund and damages. This would create a particular mess if you deeded yourself their home and then sold it. ![]() The grantee could have that transfer declared null and void, and the title would remain in their name. Generally speaking, a court will look suspiciously at any unnecessary or uncompensated transfer from a power of attorney, especially if the grantee was unaware of the transfer or legally incompetent.įor example, say you were to deed yourself a grantee’s home. For example, a power of attorney could not transfer the grantee’s assets to a spouse or child either. This rule also applies to transfers in the power of attorney’s interest. Most often that includes family members and potential heirs. If the grantee is unavailable, incapacitated, legally not competent or otherwise unable to enforce their own rights, third parties will typically have the right to enforce these laws. The grantee can enforce these laws in both civil and criminal court and, when possible, he can have any transactions unwound. It is generally governed as a fraudulent conveyance (that is, theft by fraud). Most, if not all, states have laws against this kind of self-dealing. As a general rule, a power of attorney cannot transfer money, personal property, real estate or any other assets from the grantee to himself. However, even a general power of attorney has limits. Limits on Power of Attorney Asset Transfers People will often make a general assignment to a trusted family member or long-time friend if they are going to be unreachable or incapacitated. With a general power of attorney, the person can make just about any decisions at all on your behalf while the power of attorney assignment remains valid. This is one of three types of durable power of attorney (the other two are special power of attorney and healthcare or medical power of attorney). In some cases you may assign what’s known as general power of attorney. Their authority is limited to reviewing your finances and filing documents with the IRS. Such power, however, doesn’t allow the person to sign contracts in your name or sell your car. This is a common practice and lets the tax preparer see a client’s confidential IRS and bank records, as well as filing taxes on the client’s behalf. However, assigning power of attorney to your tax preparer gives that person the authority to file your taxes as though you had done so yourself. That is to say, you will give someone power of attorney to do specific things or to act within a specific scope. For example, the IRS ordinarily would not accept taxes filed by a third party you must file your taxes yourself. Most of the time power of attorney is a limited grant of authority. ![]() A power of attorney can access confidential materials and their decisions are as binding as if you had made them yourself. This can mean managing financial assets, making choices regarding medical care, signing contracts and other commitments. Power of attorney is when you assign someone the authority to make legally binding decisions on your behalf. ![]()
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