A new uniform law is soon scheduled to take effect which sets standards for people acting as agents under powers of attorney. However, only four states have adopted the rules.
Appointing someone to act as a power of attorney is very important. If you ever become incapacitated and are no longer able to take care of your affairs, a power of attorney will let someone you trust take care of your financial matters.
However, powers of attorney have often been a source of conflict within families. This is especially true when the person appointed to handle matters is accused by other family members of acting improperly for their own benefit.
A new uniform law is designed to help end those conflicts as Financial Advisor discusses in "A New Uniform Act Guides Clients Dealing With Aging Parents."
The act has only been adopted by four states. There are concerns about the burdens it might place on children, who act as power of attorney for their elderly parents.
The law gets around the potential conflict by requiring agents to provide a financial accounting to other potential heirs.
People who are working full-time, taking care of their kids and assisting their elderly parents are concerned that they do not have the time or expertise to provide a detailed accounting of every last penny.
Despite some concerns, this law will soon go into effect in Texas, Wyoming, New Hampshire and North Carolina.
People acting under powers of attorney in those states should consult an elder law attorney so they know what their responsibilities are under the law.
For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Financial Advisor (Dec. 1, 2017) "A New Uniform Act Guides Clients Dealing With Aging Parents."