ANSWERS: 1
  • A power of attorney for a trust is a legal document that gives a person the authority to act on behalf of another person for specific matters regarding his trust.

    Misconceptions

    A power of attorney does not have to be a lawyer. A power of attorney can be any competent adult that a person trusts to act in good faith on her behalf.

    Limitations

    A power of attorney may be general allowing the person to act on all matters in a specified time frame. It may also be very specific, allowing the person to act for one single transaction.

    Requirements

    A person who wishes to appoint a power of attorney must do so in writing and must sign all necessary legal documentation in order to give that person authority.

    Examples

    A power of attorney in a trust may allow for a variety of things such as allowing a spouse to sign checks or allow a banker to sign financial documents transferring money into the trust.

    Regulation

    Powers of attorney and their requirements, limitations and special provisions are all regulated by applicable state law where the trust is held.

    Source:

    American Bar Association: Power of Attorney

    Family Care Giving Alliance: Durable Powers of Attorney and Revocable Living Trusts

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