Warning about Powers of Attorney

When you give someone "Power of Attorney," it is a powerful tool that can be used to protect your assets, but in the wrong hands, it can also be an incentive to steal.  That is why the AARP is pushing for states to adopt legislation making greedy agents liable for damages that occur when they abuse their power.

My advice is:

1) Do not give someone Power of Attorney unless you completely trust them;

2) Consult an attorney to help you draft the document so that it protects your interests; and

3) Keep most of your assets in a Revocable Living Trust with a successor Trustee named, so that the person holding Power of Attorney only deals with small accounts.