As a matter of fact, Power of attorney is nothing but it’s a legal document that gives another person authority. Let’s know can a power of attorney transfer money to themselves.
It is an important legal document that grants a person the authority to manage the legal and financial matters or, health care decisions of the principal, who has selected that person as a power of attorney. Generally speaking, a power of attorney cannot transfer money to themselves.
But under certain conditions and with the express authorization one can misuse the power of it. Different types of power of attorney give the agent varying levels of control over a principal’s affairs when you sign a power of attorney form.
Table of Contents
What Types Of Power Of Attorney Available?
On the scope of authority granted by the principal, various types of power of attorney are available.
General Power Of Attorney
In this type, the agent who has been given the power of attorney can act on behalf of the principal for all legal and financial matters. The agent can manage the bank accounts, sell assets, and manage the Government benefits like the principal’s social security. Also making decisions about the healthcare of the principal.
Special Power Of Attorney
The power of the agent is restricted to some extent like he has no authority over the principal’s other affairs. It means that an agent can manage a bank account or, execute specific financial transactions.
Financial Power Of Attorney
It is also a special type of attorney given by the principal. In which the agent can manage the financial matters on behalf of its principal.
Medical Power Of Attorney
If the principal cannot make decisions by himself, he or, she is in a coma. Then the agent has the authority to take medical decisions on behalf of the principal.
What Are The Variations Of Power Of Attorney?
The power of attorney may also vary in terms of when they are valid. If the principal is incapacitated then a durable power of attorney comes into effect. Whereas in the non-durable power of attorney, it does not become into effect. This is the main difference between durable and non-durable power of attorney.
Also how long a power of attorney remains, depends upon the type of it and the details in the legal document. All power of attorney expires when the principal gets expires.
Can A Power Of Attorney Transfer Money To Its Family Members?
A power of attorney can’t transfer money to their family members for his or, her self-interest. If a power of attorney tries to transfer the money to their spouse, child, or, anyone else, then the principal can revoke the power of attorney document.
Even interested parties could seek to override the issue that occurred to the court. But a power of attorney can transfer money to themselves under certain circumstances.
How A Power Of Attorney Can Transfer Money To Themselves?
Principals may provide compensation for the works provided by the agent, within the power of attorney document. But it should be mentioned in the power of attorney form prior, to fulfilling the duties as attorney-in-fact. Also, an agent may get reimbursement for doing their work while traveling or, get other expenses incident to their performance as attorney-in-fact.
The agent should make track and document any expenses if they want the reimbursement. Thus, in certain specific conditions, a power of attorney can transfer money to themselves. But on the written permission of their principal in the sound mind condition. Also by the approval of the principal in the form of a legal written document.
How To Choose A Power Of Attorney?
The agent must be at the age of 18, have a sound mind, and also great deal of trust in him. Because it involves a deep impact on your financial assets as well as your well-being too. However, sometimes your child could be a good choice. Choosing a spouse as a power of attorney of the same age; Can defeat the estate planning purposes of setting up.
Whereas, professionals like attorneys or, accountants could be the best choice but they may charge fees from you. So, whoever you choose as a power of attorney, must be a trusty person and fulfill all of your requisites.
End Note
These are all about can a power of attorney transfer money to themselves. If you(the principal) want to choose a power of attorney(agent) then he or, she should be trustworthy first. To fulfill all of your legal and financial matters. Thus grant your agent all of the written consent before appointing him. So your agent may take correct decisions on behalf of you and do not ever try to cheat you.
Must be a responsible person and do not try to break the legal rules or, laws as a power of attorney. Whether the power of attorney is your family member or, an agent out of your family.
See Also…
The Money Transfer App Evolution: A Complete Guide(Opens in a new browser tab)
When Is It Too Late To Fire Your Attorney?(Opens in a new browser tab)
