One of the most common documents that comes into my office is a power of attorney. I have literally seen thousands of them. To most people they would all look the same aside from a few being longer or shorter than others. So are they all the same??
No, not at all. Companies selling canned documents online or at book stores would have you believe that these documents are simple. However, these documents provide specific language for specific purposes. For example a limited power of attorney for a real estate closing would not help a person open a bank account for a sick parent. Further documents drafted that work well in one state may not work as well in other states.
To illustrate consider the potential client I had a meeting with this morning. They had a power of attorney from 2006. They need to establish a qualified income trust for their mother. When I reviewed this standard power of attorney I noticed it had no mention of estate planning further it did not provide the agent (person who received the power) the power to draft a irrevocable trust. Under Florida law if a power of attorney does not provide for that power the agent can not exercise it. The family will now have to prove incapacity in court and get a judge to establish the trust. Total cost could exceed $5,000. For a fraction of that cost they could have had a power of attorney.
This illustration is not the only problem attorneys see, some work after one loses capacity, some only work once a person is found to be incapacitated, certain title companies require the property being sold to be listed, some states require three witnesses, some states allow family members to witness, etc. Therefore one should be extremely careful in purchasing a canned power of attorney as they are not all the same.
No, not at all. Companies selling canned documents online or at book stores would have you believe that these documents are simple. However, these documents provide specific language for specific purposes. For example a limited power of attorney for a real estate closing would not help a person open a bank account for a sick parent. Further documents drafted that work well in one state may not work as well in other states.
To illustrate consider the potential client I had a meeting with this morning. They had a power of attorney from 2006. They need to establish a qualified income trust for their mother. When I reviewed this standard power of attorney I noticed it had no mention of estate planning further it did not provide the agent (person who received the power) the power to draft a irrevocable trust. Under Florida law if a power of attorney does not provide for that power the agent can not exercise it. The family will now have to prove incapacity in court and get a judge to establish the trust. Total cost could exceed $5,000. For a fraction of that cost they could have had a power of attorney.
This illustration is not the only problem attorneys see, some work after one loses capacity, some only work once a person is found to be incapacitated, certain title companies require the property being sold to be listed, some states require three witnesses, some states allow family members to witness, etc. Therefore one should be extremely careful in purchasing a canned power of attorney as they are not all the same.
No comments:
Post a Comment