Bad
estate planning decisions happen all the time, even when you have a great
attorney. One common mistake: Choosing the wrong person to be your power of
attorney. A recent case in the news was a great reminder. http://www.channel3000.com/news/crime/power-of-attorney-charged-with-taking-using-mans-money-for-personal-use/607446161.
In
that case, a Wisconsin woman became an elderly man’s power of attorney. After
time, she began to spend his money on herself. Using his power of attorney and
his money, she paid her mortgage and other bills. After she done, there was
nothing to pay his bills. What she did is a crime in Wisconsin and in Arizona.
She is now facing six felony counts.
What
this woman did is not unique. It happens every day all over Arizona. However,
it is preventable in many cases. My advice is the following: Choose a power of
attorney when you don't need one—when you have a clear head—and when you are
still competent to make good decisions.
Once you need a power of attorney you may not be in a position to make
well-reasoned decisions.
When
choosing a power of attorney, be honest with yourself. Does the person have good judgement? Is there
anything in his/her character that would suggest he/she is not trustworthy? If
you cannot answer these questions positively, choose a different power of
attorney. A person who has a history of
dishonest acts or bad financial decisions should not be your power of attorney.
If you cannot find someone to trust, get a professional
fiduciary to be a power of attorney for you. The professional will pay your
household bills, manage your finances, and take care of any other issue in your
life. Most of all, a licensed and
insured professional will keep you from being victimized.
