tag:blogger.com,1999:blog-1694415832472345772023-11-15T05:19:53.224-08:00Mateya Law FirmMateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.comBlogger30125tag:blogger.com,1999:blog-169441583247234577.post-2935563248696902812013-03-25T08:23:00.002-07:002013-03-25T08:23:31.065-07:00Our blogs are now on our new website.Please visit our new website: <a href="http://www.mateyalaw.com/">http://www.mateyalaw.com/</a><br />
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The blogs are there, as is much new information. Thank you.Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-78576323238399612362013-01-30T06:58:00.000-08:002013-01-30T06:58:39.208-08:00Blog UpdateI want to extend my apology for my absence. We are updating our website and should be back on schedule...hopefully twice per month, for this blog.<br />
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I have lots to say, and I am looking forward to sharing with via this blog. Until then...Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-9615118445079865912012-11-20T07:36:00.000-08:002012-11-20T07:36:08.462-08:00Limiting the Power of Attorney<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<b><span style="color: black; font-size: 14.5pt; mso-fareast-font-family: 'Times New Roman';"> A power of attorney document, as we have seen with Aunt Gertrude and her niece Milly, is a powerful document. Milly can do a world of good for her dear Aunt Gertrude, or she can misuse her power to enrich herself. <o:p></o:p></span></b></div>
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<span style="mso-fareast-font-family: 'Times New Roman';"><br /></span><b><span style="color: black; font-size: 14.5pt; mso-fareast-font-family: 'Times New Roman';"> What if Aunt Gertrude decides that she wants to limit Milly’s ability to act on her behalf? Suppose Aunt Gertrude is concerned that she may be tempting Milly too much by giving Milly her checkbook. What can Aunt Gertrude do?<o:p></o:p></span></b></div>
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</span><b><span style="color: black; font-size: 14.5pt; mso-fareast-font-family: 'Times New Roman';"> Aunt Gertrude can grant her niece a limited power of attorney.A limited power of attorney, as the name suggests, has some restrictions. Here are a few examples of ways in which a power of attorney document can be limited:</span></b><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
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<b><span style="color: black; font-size: 14.5pt; mso-fareast-font-family: 'Times New Roman';">“This power shall not take effect unless I have been found to be incompetent by my physician.”</span></b></div>
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<b><span style="color: black; font-size: 14.5pt; mso-fareast-font-family: 'Times New Roman';">“My attorney in fact may not write a check or use cash from my account for more than $500.00 in a single transaction.”</span></b></div>
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<b><span style="color: black; font-size: 14.5pt; mso-fareast-font-family: 'Times New Roman';">“My attorney in fact may not access more than $2,000.00 in any thirty day period.”</span></b></div>
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<b><span style="color: black; font-size: 14.5pt; mso-fareast-font-family: 'Times New Roman';">“This power shall be in effect until I return from my vacation to Italy.”<o:p></o:p></span></b></div>
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<b><span style="color: black; font-size: 14.5pt; line-height: 115%; mso-fareast-font-family: 'Times New Roman';"> By limiting the actions which Milly may take, Aunt Gertrude is protecting herself. . .or at least she is limiting the damage which can be done to her finances. <o:p></o:p></span></b></div>
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<b><span style="color: black; font-size: 14.5pt; line-height: 115%; mso-fareast-font-family: 'Times New Roman';">We enjoy hearing from you, please keep your questions and comments coming.<o:p></o:p></span></b></div>
Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-84190343037824595392012-09-27T10:16:00.000-07:002012-09-27T10:16:09.175-07:00Your “Power of Attorney” Did What!?!<div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-align: justify;">
<span style="background-color: transparent; color: black; font-family: 'Times New Roman'; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> When we hear stories of the abuse of power of attorney document, we’re often amazed at the gall and boldness that accompany the actions of the attorney in fact (the person who is appointed on the power of attorney document). One of the main reasons that Aunt Gertrude chose her niece Milly (our two fictitious characters for purposes of this blog) as her attorney in fact was that she trusts Milly to do the right thing. </span><br /><span style="background-color: transparent; color: black; font-family: 'Times New Roman'; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> An attorney in fact has a duty of loyalty to the person who appointed her (the principal). So Milly owes a duty of loyalty to her Aunt Gertrude. Milly’s actions have to be in favor of and for the benefit of Aunt Gertrude. In fact, most power of attorney documents include an "agent's acknowledgement" which the agent must sign. It affirms, among other things, that the agents actions will always be for the benefit of the principal (i.e., that Milly's actions will always be for the benefit of Aunt Gertrude.</span><br /><span style="background-color: transparent; color: black; font-family: 'Times New Roman'; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> So if Milly had not seen her Aunt Gertrude for seven years (but was still listed on her aunt's power of attorney document) and then changed the beneficiary of Aunt Gertrude's annuity from what it was to herself, that would not be in her Aunt's best interest. In fact, it would be self dealing by Milly. </span><br /><span style="background-color: transparent; color: black; font-family: 'Times New Roman'; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Milly should not take such actions. Milly has to keep Aunt Gertrude's interest above her own. We have seen this exact scenario play out. It's sad. People take advantage of the weakest among us. </span><br /><span style="background-color: transparent; color: black; font-family: 'Times New Roman'; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Be vigilant. Help the seniors in your life. Please don't stand idly by and watch while Milly robs Aunt Gertrude blind!</span></div>
Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-86306371882045711542012-08-29T07:21:00.002-07:002012-08-29T07:21:23.487-07:00What If My Attorney In Fact Moves Out Of State?<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-fareast-font-family: 'Times New Roman';"><br /><span style="color: black;"> In today’s mobile society, not too many of us stay in one place anymore. So how does that affect our choice on our power of attorney document? Your attorney-in-fact (the person you normally refer to as your ‘power of attorney’) probably lived nearby when you drafted your power of attorney document. What happens when they move away?</span><br /><span style="color: black;"> Let’s apply this to Aunt Gertrude and her niece Milly (and if you don’t know who they are, back up from today’s blog and follow their adventures from earlier blogs).</span><br /><span style="color: black;"> Aunt Gertrude is being helped by her niece Milly. Aunt Gertrude can still get around, but not by herself. She needs someone to drive her to appointments and take her for an occasional outing. Milly has a good heart and wants to help her Aunt Gertrude. Most of the time.</span><br /><span style="color: black;"> If Aunt Gertrude and Milly both live in the same town in Pennsylvania, there is nothing that stops Milly from functioning as the power of attorney document says she can. If Milly moves to Colorado, she still has all of the same powers and authority that she did before. In our country, we have what is known as comity between the states. Each state recognizes the laws of the other states. So Aunt Gertrude does not need to execute a new power of attorney document to allow Milly to continue as her attorney in fact just because she moved to Colorado. And Milly does not need a Colorado Power of Attorney document to continue to assist her Aunt Gertrude.</span><br /><span style="color: black;"> Practically speaking, Aunt Gertrude may wish to appoint someone who lives close enough to assist her with her daily routine. Legally? The power of attorney document crosses state lines with ease.</span><br /><span style="color: black;"> Please continue to share your stories with us. We’ve heard from many of you, and we hope to have some changes coming soon which will make it easier for you to post your comments on our link. Thank you for your kind words. We’re glad that our blogs are helpful.</span></span></div>
Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-1448893042341965242012-08-01T09:55:00.000-07:002012-08-01T09:55:22.066-07:00Bringing Power Of Attorney Abuse To Light<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> You recall that in our vignettes, Aunt Gertrude has appointed her niece Milly as her attorney-in-fact through the Power Of Attorney document. With just that as a background, think of your own family and acquaintances -- Have any of you reading this ever been guilty of making any of these statements: </span><br />
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">“Does Aunt Gertrude understand that she is the one in charge, not her ‘power of attorney’ [Editor’s note: the correct terminology is ‘her attorney in fact’] Milly? </span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">“Why does Aunt Gertrude allow Milly to take advantage of her like that?”</span></li>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Or how about these statements? </span><br />
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">“I am going to explain to Aunt Gertrude that she doesn’t have to allow Milly to use her car </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">all</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> of the time, just when they go to the store or hairdressers together.” </span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">“Its a shame the way Milly is taking advantage of poor Aunt Gertrude. Someone should do something about that."</span></li>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> It is estimated that nearly three billion (with a “b”) dollars are being lost to financial elder abuse </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">each year</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">, and that number continues to grow.# We can not justify sitting by and shaking our head, saying “isn’t it a shame.” There is a time to act. </span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> If you see your Aunt Gertrude’s niece Milly acting like she is in charge, don’t you dare say “What a shame” and walk away. It is up to you to speak to Milly and say the same thing: “You are not in charge, Aunt Gertrude is in charge.” And if you happen to be in Aunt Gertrude’s family, you certainly can ask Milly what she is doing with the money and ask her to account for it properly. </span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> If Milly is misusing Aunt Gertrude’s assets, like her car or house, you speak up to Milly and ask her plainly “What are you doing, and how does this help your Aunt Gertrude?” An attorney in fact agrees, in writing, to only take actions which are for the benefit of the principal -- in our case Aunt Gertrude. </span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> You may be appalled that Milly is taking advantage of Aunt Gertrude. After today, you are part of the solution. You say something to Milly. If not, you have become part of the problem. . .</span>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-43624228425718363922012-07-16T10:28:00.000-07:002012-07-16T10:28:19.754-07:00When the Power Of Attorney Is Used As A Sword Instead Of A Shield<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br />
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;"> Here is my synopsis of what happened to another “Aunt Gertrude,” but this time,</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">unfortunately, it is a sad but true example of what I have been writing. Today our paper</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">reported that it was a great niece.. You may agree with me that there is nothing so “great”</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">about this niece:</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;"><span style="mso-spacerun: yes;"> </span>“A woman stole more than $300,000 from her elderly aunt. In April 2010 the York County</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">Area Agency on Aging received a complaint that an elderly woman, who resided at the</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">Brunswick of Longstown personal care home was being financially exploited.”</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;"><span style="mso-spacerun: yes;"> </span>Let me just break in here and say “Bravo” for the nursing facility that had the guts to pick up the phone can call the Area Agency on Aging! </span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;"><span style="mso-spacerun: yes;"> </span>“The elderly woman appointed her great-niece as her Power of Attorney (Her attorney in </span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">fact). With complete financial control of her great aunt’s finances, she allegedly</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">misappropriated more than $300,000 for her own use. The great niece was arrested</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">on July 5 and charged with two counts of forgery, one count of theft by unlawful taking,</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">and one count of theft by deception. She was preliminarily arraigned before Dallastown</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">Magisterial District Judge Scott Laird and released after posting $25,000 straight bond. A</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">preliminary hearing is scheduled for Aug. 2 at 9 a.m. The charges listed above are taken</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">from the allegations in the court papers.”</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">Taken from Cumberlink.com news.</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;"><span style="mso-spacerun: yes;"> </span>The Power of Attorney document is designed to assist those who need a helping hand</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">with the routine affairs of life. Here, as is too often the case, the niece may have begun with the </span></span><span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">best intentions, but she soon learned that there was no one watching her. She had absolute</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">control and there was no automatic oversight built into the document.</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">officers,and financial planners to develop a very simple, automatic oversight into each new</span></span></div>
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<span style="color: windowtext; font-family: ArialMT; font-size: 11pt; mso-bidi-font-family: ArialMT;"><span style="font-family: Times New Roman;">power of attorney document we execute. The hope is to keep stories like this from happening to our clients. Please contact us if we can help you or if you have something to share.</span></span></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-56068088891403859632012-07-02T08:32:00.003-07:002012-07-02T08:32:27.334-07:00Abusing the Power of Attorney Document in Death<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Aunt Gertrude’s power of attorney document grants her niece Milly (the attorney in fact) the power and authority to act for her as long as she (Aunt Gertrude) is still alive. Milly must use her best efforts to care for her Aunt Gertrude (the principal) and only take actions which benefit her. But the fact is the niece Millys of the world don’t always do what is best for their Aunt Gertrudes.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Could Milly, as the attorney in fact, write a will for Aunt Gertrude which leaves everything to herself? The standard wisdom is “no.” A resounding NO! The whole idea of appointing an attorney in fact is to have a person who is looking out for the best interests of the principal. There is some discussion within the past few years that the Pennsylvania statutes do not </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">forbid</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> the writing of a will by an attorney in fact. There are even some who suggest that the power of attorney authorizes such broad powers that the writing of a will is included.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> The issue can be remedied easily – have the power of attorney document forbid the writing of a will by the attorney in fact. One sentence is all that is necessary.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> This simple step does not stop Niece Milly from waiting until Aunt Gertrude is in a pliable state of mind and then taking her to a new attorney who Gertrude has never met before and having her sign a will that she does not fully understand. Nor does it stop the niece from any of the hundreds of other ways which seniors endure elder abuse, including financial abuse.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Taking the step of forbidding the attorney in fact to write a will for the principal, however, does close one more loophole.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Please keep sharing. . . .</span>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-64178611739414257762012-06-18T08:19:00.000-07:002012-06-18T08:19:02.389-07:00Taking Control of Aunt Gertrude’s Estate<span style="color: black; font-family: "Calibri", "sans-serif"; font-size: 14.5pt;"> If you have been following our story of Aunt Gertrude and her niece and attorney-in-fact, Milly, you have heard me spin some real yarns about what Milly has done. Today, let’s look at what could happen after Aunt Gertrude dies.</span><br /><span style="color: black; font-family: "Calibri", "sans-serif"; font-size: 14.5pt;"> Suppose Aunt Gertrude had trusted Milly for years and that for years Milly was trying to do all she could to help her dear Aunt. Then, a few years before Aunt Gertrude passed away, two events happened which changed everyone’s life forever. First, Aunt Gertrude was diagnosed with an incurable disease which would eventually take her life and, in the meantime, would steal her ability to reason and think logically. At the same time, Milly was in an accident which was not life threatening, but impaired her ability to make a living.</span><br /><span style="color: black; font-family: "Calibri", "sans-serif"; font-size: 14.5pt;"> Milly continued serving as Aunt Gertrude’s attorney in fact, even after her accident. But now, Milly realized that Aunt Gertrude didn’t really understand her bank statements any more. She didn’t fully comprehend everything she was reading or listening to. And, Aunt Gertrude had over $400,000 in the bank! Milly, because of her injuries, needed money. Milly concocted an idea, and its effects are still being felt by Aunt Gertrude’s family.</span><br /><span style="color: black; font-family: "Calibri", "sans-serif"; font-size: 14.5pt;"> Milly took Aunt Gertrude to her attorney (ie, to Milly’s attorney, not Aunt Gertrude’s attorney) to execute two documents: A last will and testament and a power of attorney. Milly appointed herself the power of attorney, this time granting herself the power to make gifts to, what do you know, <u>herself</u> with Aunt Gertrude’s money. The Will left all of Aunt Gertrude’s estate and money to, what a coincidence, <u>herself</u> <u>again</u>!</span><br /><span style="color: black; font-family: "Calibri", "sans-serif"; font-size: 14.5pt;"> Milly spent the next two years systematically caring for Aunt Gertrude’s needs with Aunt Gertrude’s money as well as writing herself checks and depositing them into her own account. When Aunt Gertrude died, there was barely enough left to bury her.</span><br /><span style="color: black; font-family: "Calibri", "sans-serif"; font-size: 14.5pt;"> This may sound like a cheap dime-store detective novel, but it happens every day! If you or someone you know is being cared for by an attorney in fact, commonly referred to as a ‘power of attorney,’ take time to look in on them. Both. The principal (the person being helped) and the agent (the attorney in fact). In most power of attorney documents, there is no oversight built in. </span><br />
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<span style="color: black; font-family: "Calibri", "sans-serif"; font-size: 14.5pt;">At Mateya Law Firm, we have worked to create an automatic oversight in the power of attorney document. We can help you avoid situations like the dear departed Aunt Gertrude. Feel free to contact us, we welcome comments and questions.</span></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-61009007320200664122012-06-14T08:19:00.001-07:002012-06-14T08:22:27.090-07:00Power of Attorney: Oversight 2<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">The problem inherent when appointing someone as your attorney in fact (through the power of attorney document) is oversight. Who is watching the person who you have appointed as your attorney in fact? And if you are saying “Why, my niece is my ‘power of attorney.’ She would never do anything that would cause me harm.” If you’ve just had this thought, you need to go back to the beginning of this blog and review some of the things that my fictional character “Milly” has done to her “Aunt Gertrude.”</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">These characters are fictional, but I have personally witnessed everything I have written about in this blog. It’s like the old Dragnet TV show. . .”the names have been changed to protect the innocent.” Real people, usually seniors, have these real problems with the power of attorney document every day.</span></div>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">A simple addition to the generic power of attorney document can create a duty for your attorney in fact to report his or her actions to an independent third party. The advantages are many.</span></div>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">First, if your attorney in fact, let’s use Niece Milly, is purchasing cat food, a cat box, and paying vet bills from Aunt Gertrude’s account as her attorney in fact, and Aunt Gertrude does not own a cat, that’s a problem. When this purchase is reported to the independent third-party, that person will question Milly about the expense and either require her to reimburse Aunt Gertrude or take the appropriate action, including legal action which can be both civil and criminal.</span></div>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">Second, suppose Milly is acting appropriately towards Aunt Gertrude and each of the actions she takes and bills she pays are, indeed, for the benefit of Aunt Gertrude. If she reports to an independent third party, and that person reviews the actions and finds them to be appropriate, Niece Milly now has someone to call on to prove that she has acted appropriately in case anyone accuses her of wrongdoing.</span></div>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">I will explore this subject further in our next post. Thank you to all of you who have been following our blogs. Keep your questions coming, and if I may use your question publicly, please let me know so that I can share the information with everyone.</span></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-43087791741337330972012-05-10T07:07:00.000-07:002012-05-10T07:07:18.659-07:00Power of Attorney Oversight<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-indent: 0in;">
<span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">One of the questions that I get when dealing with the family members of a senior citizen is “how much control do I have, now that I’m the ‘power of attorney’ for Mom?” First, I usually restrain myself from correcting them: “You’re not Mom’s power of attorney, you’re her ‘Attorney in Fact.’” Next, I will often ask, “Why do you ask? What is it you wish to do?” I want to be sure that the newly appointed attorney in fact knows that I am interested in what actions they take.</span></div>
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<span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">The fact is, the attorney in fact who Mom appoints can do just about anything Mom can do. That is pushing the door wide open.</span></div>
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<span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">Can the attorney in fact move Mom from one nursing home to another? Yes.</span></div>
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<span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">Can the attorney in fact cash in all of Mom’s investments? Yes.</span></div>
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<span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">Can the attorney in fact pay themselves a hefty fee? The PEF code, section 5609, <i>does</i> permit a reasonable fee, and the meaning of “reasonable” is a discussion for another time. But herein lies the biggest problem of appointing an attorney in fact. Who is there to watch what the attorney in fact is doing with Mom’s money? Unless oversight is built directly into the document <u>requiring</u> the attorney in fact to report to some third party, there is no one watching the attorney in fact.</span></div>
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<span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">The answer is simple: create an automatic oversight, right in the document, which requires the attorney in fact to report, at least on an annual basis, to a third party. A simple written recitation is all that is required. The next time, we’ll talk about what the attorney in fact’s recitation is all about, and how it protects both the Principal and the attorney in fact.</span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></b></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-18788359290726181382012-04-23T08:58:00.001-07:002012-04-23T08:58:46.935-07:00Self Help and the Power of Attorney<span style="background-color: transparent; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> I recently heard from clients who I had not seen in about eight years. At that time we had helped them with estate plans. They did not want us to draft anything other than their last will and testament. We always discuss the protective documents (living will, power of attorney, medical directives, etc.) with each estate planning client, but these clients wanted to take care of the other documents themselves. Essentially, they were going to go online, or to a store, to get a form or a ‘document kit’ and fill-in-the-blanks on their own ‘one day soon.’</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> One day soon never arrived.</span></h3>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> I met with them at the nursing home where one spouse was convalescing from a near-death event. Now they need these protective documents as quickly as I can draft them. And therein lies the problem. . .</span></h3>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> The Power of Attorney is a document that I compare with insurance. You buy insurance, pay the premiums and make sure your policy is close at hand in case you ever need it. But you hope you never need it. You should think of the Power of Attorney document in the same way. You prepare for the worst case scenario and then hope it never happens.</span></h3>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> “What if I can’t take care of my own business, pay my own bills, because I am in a hospital bed recovering from an accident? Who will step in for me?” Those are the questions you should ask yourself. Now, before the need arises.</span></h3>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Self-help forms are fine, and you can fill them out yourself. So long as you know everything I know (and by the way, I’m a lawyer). Without this specialized knowledge of the law, the presumptions in the law, and the duties and obligations of individuals, you may innocently fill in those forms in a way that is not good. In the legal world, we often jokingly refer to such forms and will kits as “The Attorney’s Full Employment Act.” One lawyer could have been hired to properly execute estate planning documents. Instead, when things go awry because of badly drafted documents, and several beneficiaries think they are ‘entitled’ to a better position in an estate (or to ‘Grandma’s checkbook’), then </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">all</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> of the family members will hire attorneys to fight it out. “The Attorney’s Full Employment Act.</span></h3>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> My clients were fortunate that they were able to call me a second time. Most aren’t that lucky. Most end up wishing they had done the right thing. But it was too late. Don’t make the same mistake. Take care of these very important steps now, ahead of time.</span></h3>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com1tag:blogger.com,1999:blog-169441583247234577.post-52125719905040666762012-03-15T08:46:00.000-07:002012-03-15T08:46:40.926-07:00When the Power of Attorney Acts Badly. . .Now What?<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>When Aunt Gertrude appointed her niece Milly to be her attorney in fact through the Power of Attorney document, she never dreamed she would have to consider what to do if she suspected her niece was not doing the right thing. “That’s Milly. . .she would never do anything to hurt me,” Aunt Gertrude thought.“Why, I’ve known her since she was born. She’s family” So Aunt Gertrude didn’t ask the attorney if there was any sort of “oversight” built in to the Power of Attorney document they were both signing at the attorney’s office that day. She didn’t think she would need it.</span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-indent: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>The truth is, when anyone executes a Power of Attorney document and appoints their niece Milly, their son, or their best friend, they are putting their trust in that person. The attorney in fact does not have a duty to report their actions to anyone, unless the Power of Attorney document they sign has some oversight built into it. And, sadly, the Power of Attorney documents which 99% of us have signed do <u>not</u> have any oversight built into them.</span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>Here in the Commonwealth of Pennsylvania, we have an “Agent’s acknowledgment” which the attorney in fact or agent is required to sign. It essentially says “I promise to do the right thing.” (That may be a too-loose translation, but you get the idea)</span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><a href="https://docs.google.com/document/d/1r1L4e9gu-QwxSeVgzgZxuSd7rrGaHRH00QovDP36JLo/edit?pli=1#_ftn1"><span style="color: #1155cc; font-size: 12pt; font-weight: normal; mso-bidi-font-size: 11.0pt;">[1]</span></a></span></b><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"> The agent, however, is not required to reveal any of his or her actions to anyone.</span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>At Mateya Law Firm, we have changed that. We have added language which requires the agent to produce a written record of any and all the actions taken on behalf of the principal. The concept is built on the same logic as “good fences make good neighbors.”</span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>We would be happy to explain to you how a power of attorney document can help you, and how it can help protect against the nefarious “Niece Milly” in your life.</span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></b></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-indent: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="font-size: 12pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><a href="https://docs.google.com/document/d/1r1L4e9gu-QwxSeVgzgZxuSd7rrGaHRH00QovDP36JLo/edit?pli=1#_ftnref1"><span style="color: #1155cc; font-family: "Arial", "sans-serif"; font-size: 10pt; mso-bidi-font-size: 11.0pt;">[1]</span></a></span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 10pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: black; font-size: 12pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";">The agent’s acknowledgement requires the agent to act for the benefit of the principal, keep assets of the principal separate from my assets, exercise reasonable caution and prudence, keep a full and accurate record of all actions, receipts, and disbursements on behalf of the principal.</span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></b></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-77699847032547403512012-02-27T08:46:00.000-08:002012-02-27T08:46:21.211-08:00What Happens When the Attorney in Fact Won’t Act?<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-indent: 0in;"><span style="font-size: 12pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";"> Mom is being cared for by her attorney in fact (the person who is appointed through the power of attorney document). The attorney in fact tries to do his best in caring for Mom, but there is a problem. . .a sibling who doesn’t <i>want</i> the attorney in fact to be there to help Mom.</span><span style="font-size: 12pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";"> Let’s suppose that our Aunt Gertrude was being helped by her niece Milly, as in our earlier discussions. Aunt Gertrude appointed Milly because she trusted her to make the best decisions for her that she could. Let’s suppose further that Milly has always acted in Aunt Gertrude’s best interests. But now Aunt Gertrude is not doing so well physically, and Milly needs to be at her home more frequently. If something prevents Milly from being there, say another family member who actually threatens Milly, what should Milly do?</span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></b></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";"> If Milly stands up to the bully, she can likely have the bully removed from the situation.</span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></b></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";"> But what if Milly is bullied herself? What if she decides, ‘it isn’t worth the fight’ to take some action to try and help Aunt Gertrude. Then what happens?</span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></b></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";"> There are a few things that could happen: </span></div><div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 11.5pt; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">Aunt Gertrude could speak up for herself. If, however, the bully is there, she may be afraid to do so. </span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: -0.25in;"><span style="font-family: Wingdings; font-size: 13.5pt; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">The bully could simply run roughshod over Milly and Aunt Gertrude, taking advantage of the situation for her own use. </span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></b></div><div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: -0.25in;"><span style="font-family: Wingdings; font-size: 13.5pt; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">Another family member who sees Aunt Gertrude being bullied by Milly could try to help out.</span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></b></div><div class="MsoListParagraphCxSpLast" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: -0.25in;"><span style="font-family: Wingdings; font-size: 13.5pt; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">Or – the family member could tell Milly that if she doesn’t stand up for Aunt Gertrude, she will file an action to have Milly removed from the power of attorney document. This is a drastic (and not always successful) step, but it is a way of bringing the actions of the bully out into the open.</span></div><div class="MsoListParagraphCxSpLast" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: -0.25in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";"> The power of attorney document is meant to be a shield. When it is not used in that way, it can become as powerless as the person who holds it.</span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></b></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 3; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";"> Watch your senior citizen friends and relatives closely. Be sure that the POA document they signed is benefitting them.</span><b><span style="font-size: 13.5pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></b></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-59700467942762036732012-01-18T07:57:00.000-08:002012-01-18T07:57:51.550-08:00Selling a Property with a Power of Attorney Document<span style="color: black; font-family: "Arial", "sans-serif";"> <div align="center" style="margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-family: "Arial", "sans-serif";">– Why Does the Bank Want Something More?</span></div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;">So Aunt Gertrude has named her Niece Milly as her attorney in fact through the power of attorney document. Suppose Aunt Gertrude wants to sell her house, but because of infirmity, she is unable to go to the bank to take care of any financial arrangements, or to the realtor’s office for the closing. Is the power of attorney document she already executed sufficient to allow Milly to show up at the closing and to sign the myriad of papers required to sell a home today?</div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="color: black; font-family: "Arial", "sans-serif";">The answer is “probably.”</span></div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="color: black; font-family: "Arial", "sans-serif";">Recently (within the past two years), some banking and other financial institutions are requiring very specific language in a power of attorney document in order to complete real estate transactions. At first blush, the document the bank is handing you looks nearly identical to the fully executed power of attorney document you handed to them (just before they refused it). These institutions are trying to protect themselves.</span></div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="color: black; font-family: "Arial", "sans-serif";">If Aunt Gertrude is not careful, she may not be able to sell her house after all. Not because she doesn’t want to sell it, or because she doesn’t have a willing buyer, or because the buyer does not have the money. No, it could be because the power of attorney document, though it was thoroughly written and is perfectly legal, does not make this particular financial institution happy.</span></div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="color: black; font-family: "Arial", "sans-serif";">So what is the moral of the story? If you or a loved one is selling or buying real property (i.e., real estate with or without a building on it), show the power of attorney document to the lender at least thirty days in advance of the closing date. That way, if your lender wants to have you execute their own version of a power of attorney document, you will have time to take the “special” document to your attorney for his or her review and execution, and the closing date will not have to be rescheduled (and the sale of Aunt Gertrude’s house). </span></div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="color: black; font-family: "Arial", "sans-serif";">Keep sending us your feedback. We will try to incorporate some of your questions into the upcoming adventures of Aunt Gertrude and her niece Milly.</span></div></span>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com1tag:blogger.com,1999:blog-169441583247234577.post-10534524894319890052012-01-04T07:50:00.000-08:002012-01-04T07:50:23.181-08:00Should Your POA Be Paid?<div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt 0.5in;"> Aunt Gertrude, our elderly character, and her niece Milly, the attorney in fact through Aunt Gertrude’s Power of Attorney, face life every day, just like you and I do. The difference is that there is this added level of responsibility for Milly. She not only takes care of her own life, her own needs, and her own dreams, but she is the attorney in fact for her Aunt Gertrude. So what does that mean to Milly? What added responsibility does Milly carry? And what does Milly get for taking on this burden? </div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt 0.5in;"> How about payment? </div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt 0.5in;"> This step is often completely overlooked. Aunt Gertrude and Milly could make a fair arrangement of payment-for-services.<span style="mso-spacerun: yes;"> </span>In most cases, Power of Attorney documents are drafted as a part of a complete package of protective documents – Last Will and Testament, Living Will, Medical Directives, Power of Attorney, and so on.<span style="mso-spacerun: yes;"> </span>Payment is not a consideration when you are discussing the creation of a ‘safety net.’ </div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt 0.5in;"> You should be aware, however, that it is completely within the bounds of the law for a principal (here, Aunt Gertrude) to pay an agent (here, the attorney in fact, Niece Milly) for work that is performed by the agent on behalf of the principal. </div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt 0.5in;"> So what is fair?</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt 0.5in;"> The answer to that is as diverse as our great country is diverse. Aunt Gertrude and her Niece Milly are free to negotiate any agreement they like. Perhaps if they approach this subject now, before any misunderstandings occur, they will be less likely to have a ‘cat fight’ later if a problem occurs between them (like Milly helping herself to something that, perhaps, is more than her dear Auntie would have liked – like her MONEY!). </div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt 0.5in;"> This topic is a new one within the power of attorney discussion. We’ll move this along a little further the next time.</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt 0.5in;"> Continue to send us your comments. . .we’re having a little trouble allowing the comments to be shared online. We see them, but now (if we can finagle the technology) we are going to allow you to see them, too!</div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-60591390930811325852011-12-15T09:38:00.000-08:002011-12-15T09:38:06.040-08:00So Aunt Gertrude Needs Help. . .?<span id="internal-source-marker_0.8999957256898112" style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Most of us have an “Aunt Gertrude” who needs someone to help look after them. Perhaps she’s a little less spry than she used to be. Perhaps she is less clear than she used to be when you talk to her. You wouldn’t want her to have to live in a nursing home, but you can’t have her living in </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">your</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> home. So what do we do?</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br />
<div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">That’s where Aunt Gertrude’s niece Milly comes in. Milly is willing to help, and will do anything she can to help dear Aunt Gertrude. And when we’re at the Christmas dinner with the family, and we hear “Milly took Aunt Gertrude to the attorney, and now she is helping her. She’s the ‘power of attorney’ for Aunt Gertrude.”</span></div><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><br />
</div><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">We think, “Awww. Isn’t that nice? We’re so happy that someone stepped up to help.” And we move on to the next topic, or the next course of our meal.</span></div><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><br />
</div><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">But not Aunt Gertrude. Her life is now in the hands of someone else. She can’t outrun Milly, she can’t out-think Milly. She is completely dependent on Milly’s good character. There are a few problems with this scenario.</span></div><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><br />
</div><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">First, what if Milly has ulterior motives? What if she doesn’t have Aunt Gertrude’s best interests at heart? Second, where is the oversight? Who is watching Milly? No one.</span></div><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br />
<div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">At Mateya Law Firm, we have worked with attorneys, bankers, financial investors, and accountants around the state to create a power of attorney document which gives the attorney-in-fact (the name of the person who is appointed through a power of attorney document) all the powers that are available under the Pennsylvania Statutes, but also has an automatic oversight clause, written directly into the document. We can help you strengthen your power of attorney document. Contact us. We can help.</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline;"></span></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-68691253824944510012011-11-10T08:57:00.000-08:002011-11-10T08:57:13.812-08:00A Limited Power of Attorney<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> A power of attorney document can be drafted without limitations, such is a durable power of attorney. It can also be drafted with limitations, a limited power of attorney. There are advantages to a limited power of attorney. I will discuss a few of the more common limited powers which I have seen.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> First, an Attorney-in-Fact’s powers can be limited by time. If you know you will be out of the country for a certain amount of time, the power of attorney document can state that it is valid “until I return to Cumberland County sui juris (in my right mind).” This may help when your physical absence and the assistance you need go hand-in-hand.</span><br />
<div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">An Attorney-in-Fact’s powers can be limited in scope. For example, if the powers included are financial, you may wish to give your Attorney In Fact the power to write checks on your account “not to exceed five thousand dollars in any twenty-four hour period.”</span></div><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">The particular facts of your situation may also guide how the power of attorney document is drafted. I recall one such incident where the Principal was travelling out of the country and needed someone to transact one particular piece of business for him. His cousin was his chosen Attorney in Fact because his cousin was in the same business. The problem was he didn’t trust his cousin very far.</span></div><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">We drafted a power of attorney document which empowered his cousin to take action as it related to this very narrow issue, up to a certain dollar amount, until such time as he (the Principal and Grantor of the power of attorney) returned to his home country, sui juris. It was as close to an ‘insulting’ power of attorney document as I ever drafted. The cousin was not insulted, however, as he stood to make a nice profit when the deal went through.</span></div><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-indent: 36pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">So before you zoom out and use a software package or a web site to download a power of attorney document, consider carefully what limitations you would like. . .and have your estate planning attorney craft just exactly what you need.</span></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-6614883052901851972011-09-22T07:22:00.000-07:002011-09-22T07:22:56.345-07:00Revoking Power of Attorney<div style="border-bottom: windowtext 1.5pt solid; border-left: medium none; border-right: medium none; border-top: medium none; mso-element: para-border-div; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;"><div class="MsoNormal" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; line-height: 150%; margin: 0in 0in 0pt; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"><b><span style="color: black; font-family: "Arial", "sans-serif";"> <span style="mso-spacerun: yes;"> </span></span></b><span style="color: black; font-family: "Arial", "sans-serif"; mso-bidi-font-weight: bold;">Suppose we have to remove an attorney in fact. Suppose that<b> </b></span><span style="color: black; font-family: "Arial", "sans-serif";">Aunt Gertrude’s attorney in fact, her niece Milly, has been less-than-honest with her Aunt Gertrude. How does Aunt Gertrude go about removing her? Every state has different laws, so your Aunt Gertrude will have to be sure that she is taking actions which work for her situation and in her jurisdiction. </span></div><div class="MsoNormal" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; line-height: 150%; margin: 0in 0in 0pt; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"><br />
<span style="color: black; font-family: "Arial", "sans-serif";"><span style="mso-spacerun: yes;"> </span>The first thing to know is this: You <u>may</u> remove your attorney in fact as long as you are in your right mind (sui juris). In civil law the phrase sui juris indicates legal competence, the capacity to manage one’s own affairs.<span style="mso-spacerun: yes;"> </span></span></div><div class="MsoNormal" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; line-height: 150%; margin: 0in 0in 0pt; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"><br />
</div><div class="MsoNormal" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; line-height: 150%; margin: 0in 0in 0pt; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif";"><span style="mso-spacerun: yes;"> </span> Don’t let anyone tell you that now that I’m your “Power of Attorney, you can’t tell me what to do.” <span style="mso-spacerun: yes;"> </span>You are still the boss.</span></div><div class="MsoNormal" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; line-height: 150%; margin: 0in 0in 0pt; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"><br />
</div><div class="MsoNormal" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; line-height: 150%; margin: 0in 0in 0pt; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><span style="color: black; font-family: "Arial", "sans-serif";"><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Next, you have the right to appoint anyone you trust. It does not have to be a family member. And you can make the change for any reason, or for no reason at all. The choice is yours. </span><br />
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<span style="color: black; font-family: "Arial", "sans-serif";"> <span style="mso-spacerun: yes;"> </span>Finally, to remove the person appointed as your attorney in fact, notify him or her, preferably in person and in writing. Have your attorney notify them as well. </span><br />
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<span style="color: black; font-family: "Arial", "sans-serif";"> <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Aunt Gertrude should tell Milly that she is no longer her attorney in fact. Aunt Gertrude should write to Milly, certified mail if possible. And Aunt Gertrude’s attorney, if it’s not too much trouble, should contact Milly, via writing, that she is no longer the attorney in fact for Aunt Gertrude. </span><br />
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<span style="color: black; font-family: "Arial", "sans-serif";"> <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Sound like too much work? Then, at least tell Milly of the change, and tell your bank, the </span><span style="color: black; font-family: "Arial", "sans-serif";">place where the money resides. They can help you from there. Your local County Office of Aging can also help you. Aunt Gertrude can make the change. She might need your help. Be there for your Aunt Gertrude.</span></div></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com1tag:blogger.com,1999:blog-169441583247234577.post-68598810354307459132011-08-17T08:33:00.000-07:002011-08-17T08:33:43.765-07:00Power of Attorney - When Is It A Bad Idea?<span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt;"><span style="font-family: Times New Roman;"> <div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt;">Suppose your Aunt Gertrude can use help with around the house. She isn’t as spry as she used to be. She likes living in her own house, but she needs some help. Physically. She needs help at the grocery store. Some days, her </span><span class="st1"><span style="font-family: "Arial", "sans-serif";"><span style="font-size: small;">rheumatism</span></span></span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt;"> is so bad that she doesn’t want to go. She could use a helping hand. </span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt;">So her niece Milly offers to lend a hand. “Isn’t it nice of Milly to give up her Saturday afternoon to help poor, sweet Aunt Gertrude?” The neighbors all think it’s so sweet. </span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt;">And it probably is. Most of us love helping our family members. We wouldn’t think of taking advantage of them. But far too often, things turn sour. Like the Watertown, New York man who was helping a woman in her 90’s. He helped himself to over two hundred thousand dollars. Or the Naples Florida man who ran up thousands of dollars on his 78 year old mother’s credit cards. Both of these are recent stories. Do a word search on any internet browser with “Power of attorney” and stealing money. You will find the ‘crisis du jour’ for some senior citizen. </span></div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><br />
</div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt;">So when should you not suggest Aunt Gertrude appoint an attorney-in-fact through a power of attorney document?</span></div><div style="margin: 0in 0in 0pt; text-indent: 0.5in;"><br />
</div><div style="margin: 0in 0in 0pt 1in; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><span style="color: black; font-family: Symbol; font-size: 11pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt;">When all she needs is physical help.</span></div><div style="margin: 0in 0in 0pt 1in; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><span style="color: black; font-family: Symbol; font-size: 11pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt;">When she still has the power of reason to make her own decisions.</span></div><div style="margin: 0in 0in 0pt 1in; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;"><span style="font-size: small;">·</span><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt;">And, especially when she is frail physically, but alert mentally. </span></div><div style="margin: 0in 0in 0pt 1in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;"><span style="color: black; font-family: "Arial", "sans-serif"; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>“But she looks so helpless.” or “It would be great for her to not have to worry about her bills.” <span style="mso-spacerun: yes;"> </span>I have had 90 year olds who not only still pay their own bills, they still help manage their investments. </span><span style="font-size: 12pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-indent: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;"><span style="color: black; font-family: "Arial", "sans-serif"; mso-fareast-font-family: "Times New Roman";"> The problem of appointing an attorney in fact for a feeble senior citizen is that they are easily bullied. Today’s tip is to be sure that the attorney in fact in your aunt Gertrude’s life is, indeed, watching out for Aunt Gertrude’s best interests. And not his or her own. </span><span style="font-size: 12pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div align="center" style="margin: 0in 0in 0pt; text-align: center;"> </div></span></span>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-89309518090013493952011-07-21T08:11:00.000-07:002011-07-21T08:11:00.571-07:00Power of Attorney -- When Can It be Signed?<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Our blog features the fictitious story of Aunt Gertrude and her niece Milly who serves as her attorney in fact through the power of attorney document. The question must be raised in each such situation -- Was Aunt Gertrude aware of what she was signing? Did Milly or the attorney thoroughly explain the document which she was signing? What were the circumstances surrounding the signing of the power of attorney document? We will address this last question first. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Any person signing, also referred to executing, a legal document must be aware of what it is he or she is signing. The signing must also be completed freely without coercion or duress. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> If Aunt Gertrude went to visit an attorney whom she knew -- perhaps one who had done legal work for her in the past -- and she was comfortable with the attorney, it is more likely that she will be willing to ask questions. Aunt Gertrude would feel more at ease with the surroundings...she’s been in this office before. The personal comfort level matters. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Conversely, if her niece Milly takes Aunt Gertrude to an attorney who she does not know, and to an office in a part of town with which she is not familiar, she will be less comfortable. Aunt Gertrude will be less likely to ask questions. She is ‘out of her element’ and more fearful. She is less likely to ask questions. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> It is the attorney’s job to be sure that Aunt Gertrude has the mental capacity to sign the power of attorney document. The attorney must “take stock” of Aunt Gertrude’s mental capacity. It is the attorney’s duty to be sure that Aunt Gertrude is properly aware of her surroundings and knows the time in which she is living. Most importantly, the attorney must be sure that Aunt Gertrude is aware of the consequences of executing a power of attorney document. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> If the attorney is not convinced that Aunt Gertrude is not aware of her surroundings or the time in which she lives, he or she is duty bound </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">not</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> to execute the document. If the attorney is not convinced that Aunt Gertrude understands the consequences of signing a power of attorney document, he or she is equally duty bound </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">not</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> to execute the document. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> It is important to remember, whether you are taking your Aunt Gertrude to sign a power of attorney document, or you are the one who is appointing an attorney in fact to act on your behalf, don’t sign anything that you do not understand. Don’t sign anything with which you are uncomfortable or that makes you fearful of losing control. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Follow us as we provide suggestions to help protect you and your loved ones from the many abuses of the power of document. </span>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-26633717761049877732011-07-13T10:32:00.000-07:002011-07-13T10:32:24.819-07:00Power of Attorney -- “Can She Do That?”<div class="flippy"> </div><div class="postContents"><div class="snippetPost"> “The best thing for Aunt Gertrude would be to have someone help her, to look out for her, you know. . .help her with her check book and what not.” This comment, or one like it, is often what you hear at a family gathering after dear Aunt Gertrude toddles past with her walker or leaning on her cane. With the Fourth of July just past, you may have been a part of a similar conversation.<br />
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So Aunt Gertrude appoints her dear niece Milly as her attorney-in-fact, often referred to as her power of attorney. Milly’s attorney drafts a standard power of attorney document at her office. The attorney spends a minimal amount of time with Milly and Aunt Gertrude, in fact this is the first time she ever even met Aunt Gertrude, though she has known Milly for years. Aunt Gertrude doesn’t ask any questions of Milly’s attorney. She isn’t quite sure what a “power of attorney” is, but she feels very important sitting in this nice office with a female attorney. She feels like Milly must know all about such things. <br />
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On the way home, Aunt Gertrude starts to look over this very important paper she has signed. It must be important, because the attorney gave one to Milly, too. She’s not exactly sure what “Expressly limiting the duration of a power” means, or what “renouncing a fiduciary position” could have to do with her. But Milly is taking care of her. <br />
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Now -- hit the Fast Forward button on this story. Sometime, perhaps six months or six years into the future. . .<br />
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“I would like to make a withdrawal please,” Milly says to the office administrator at Aunt Gertrude’s Bank. Milly slides the withdraw slip to the teller along with a copy of her power of attorney. The teller politely takes the papers from her. After making sure that everything is in order with her supervisor, the teller returns and asks<br />
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“How would you like this, in a cashier’s check?” <br />
“No,” responds Milly. “Please make it cash. Large bills.” <br />
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After taking a moment to gather the funds, the teller counts out the withdrawal, one large bill at a time. “There you go, ten thousand dollars.” <br />
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Milly pleasantly smiles and says, just before departing “Please don’t mention this to anyone from my family. I know some of them do their banking here.” <br />
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“Don’t worry. We’re not allowed to discuss other people’s accounts with anyone unless they are on the account,” to which Milly responds “good.” <br />
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This scenario plays out every single day, and that is no exaggeration. Aunt Gertrude doesn’t have a clue that Milly is taking her money, and no one in the bank has the power to stop her. She has the power of attorney document which was prepared by an attorney, signed by Aunt Gertrude, witnessed and properly notarized. <br />
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We call it Senior Citizen abuse without a scratch. We are trying to put as much information out as possible to help our caregivers and our senior citizens. Watch our Twitter account at “MarkMateya” for new resources to help prevent senior citizen financial abuse. And thank you for your stories. We’ll begin sharing some of your stories, of course with “Aunt Gertrude and her niece Milly” as our subjects. </div></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-30782107284248000042011-06-06T07:46:00.000-07:002011-06-06T07:46:44.620-07:00Power of Attorney: How Much Should Be Out In The Open, Part III<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> When choosing a person to be her attorney in fact, our Aunt Gertrude (read prior posts to learn more about our dear Aunt Gertrude) must find the person whom she trusts. Aunt Gertrude has to be comfortable with having this person make decisions that are in her best interest. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Last time we discussed some of the checks and balances that are already in place. . .the Agent (in our case, Aunt Gertrude’s niece Milly) must take actions which are in her aunt’s best interest. The agent must be loyal to her aunt and be ready to give an accounting for all of the actions which she has undertaken for her aunt. The Agent’s Acknowledgement can be a powerful tool. . .if someone asks. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> But what if no one asks? </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> “Oh, we know that Milly loves her Aunt Gertrude. Milly would </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-weight: normal; text-decoration: none; vertical-align: baseline;">never</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> do anything wrong.” Or “I don’t want to get involved in a family matter.” These are the types of comments the attorneys hear when trying to sort out a mess after the fact. . </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> One small change that can help is to add language to the power of attorney document which </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-weight: normal; text-decoration: none; vertical-align: baseline;">requires</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> the attorney in fact to report his actions, taken on behalf of the principal, to a third party. And make that report simple. A “yellow pad” report is fine, as long as it is supported with receipts, cancelled checks, etc. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> If Milly goes shopping and buys groceries for her Aunt Gertrude twice a month, she must show the receipt and the cancelled check or the check register to a third party. How often? It’s up to Aunt Gertrude, really, but to be safe, make it no less than once a year. Put the language in your power of attorney document. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Who is the ‘third party’ that she is reporting to? Again, it is up to Aunt Gertrude, but your attorney is the natural choice. It was he or she who helped Aunt Gertrude to this point. Appointing a professional like an attorney or a CPA will put Milly on notice that someone is going to look at these receipts. Someone is actually going to see her purchases. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> The Agent’s Acknowledgement is fine, but only if someone ever looks at the actions Milly has undertaken for Aunt Gertrude. The yearly review uses the strengths of the Agent’s Acknowledgement, requiring the attorney in fact to share information about her actions with an outside party. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Please let us know how your Aunt Gertrude is faring. We want to hear your stories. We will be happy to share the specific language we use in our Power of Attorney Documents. Contact us. </span>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-88186511763841194412011-05-09T07:55:00.000-07:002011-05-09T07:55:51.887-07:00Power of Attorney: How Much Should Be Out In The Open, Part II<div style="margin-bottom: 0pt; margin-top: 0pt; text-align: justify;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> We have been discussing Aunt Gertrude and Milly, our principal and attorney-in-fact, and the ways which Milly is limited by the power of attorney document. I earlier made the comment that “The real problem is that no one knows exactly what Milly is doing. And Milly has no oversight.” Actually, Pennsylvania’s statutes (chapter 56 of Pennsylvania Statutes, Title 20) do contain certain provisions which are designed to give some protection to the person appointing an attorney-in-fact. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> To begin with, an Agent’s Acknowledgement must be included in each power of attorney document, wherein the agent (another name for the attorney in fact) acknowledges his or her responsibilities and loyalties. The Power of Attorney document also addresses the agent’s ability to give gifts (limited or unlimited). The legislature continues to refine and expand these laws in an attempt to further protect our senior citizens. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> The document also requires the formality of signatures which are both witnessed and notarized, granting the power of attorney document its place among other, equally important estate planning documents. The hope is to impress the importance of this transaction and document on both principal and agent/attorney-in-fact. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> There are penalties for those who transgress their duties, and it is those penalties which our legislature is presently addressing. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> The rise in abuse of power of attorney cases makes it clear that this is an area where we need to be vigilant in the defense of our senior citizens. Our Aunt Gertrudes are depending on us. We are fortunate that here in Pennsylvania there is continued effort to strengthen these laws. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> The next time, we’ll address another way in which the power of attorney document, with some very small revisions, can further protect Aunt Gertrude. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Please leave a comment or a story of your own. Thank you to all who have commented that they are enjoying our two blogs. . . </span></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com0tag:blogger.com,1999:blog-169441583247234577.post-33577140378550910122011-04-27T08:59:00.001-07:002011-04-27T08:59:49.936-07:00Power of Attorney: How Much Should Be Out In The Open? (Part I)<div id="internal-source-marker_0.6005461052243369" style="margin-bottom: 0pt; margin-top: 0pt; text-align: center;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Having named her niece Milly as her Attorney in Fact, Aunt Gertrude feels so much more secure knowing that there is someone who will ‘look out’ for her in the future. And the family members are all so proud of Milly for stepping up to the plate to help. Aunt Gertrude’s bills are being paid on time, she has a quiet confidence in Milly </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-weight: normal; text-decoration: none; vertical-align: baseline;">plus</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> she has the peace of mind knowing that Milly is looking out for her best interests. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> So who is keeping an eye on Milly? </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> “Oh, we don’t have to worry about that. She’s family” is the resounding answer I hear when I ask that question of family members. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> “Aunt Gertrude and Milly have been close since Milly was a toddler” is a typical response. And I want to believe the best about Milly. I do. We all do. After all, its much easier to have Milly carrying the load. The family trusts her. And the family knows that Aunt Gertrude is cared for. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Sort of. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> The real problem is that no one knows exactly what Milly is doing. And Milly has no oversight. Milly may be the best thing since sliced bread. And she may not be. Once an attorney in fact takes actions on behalf of the principal, here, Milly acting for Aunt Gertrude, she quickly learns that the power of attorney document is all she needs. She can take whatever actions she chooses, limited only by the document. And the power of attorney is a powerful document. There are very few limits on what she can do.</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Families often feel uncomfortable asking a “Milly“ what is happening with Aunt Gertrude’s finances, even when they suspect foul play. They feel they are meddling, and they don’t want to get involved. But that may be exactly what is needed. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> We are going to investigate two ways that an attorney in fact is limited in what actions he or she may take. One which is statutory and one which is new. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Please keep sharing your stories with us, or leave a comment on our blog. We want to help our senior citizens live a happy, full life. </span></div>Mateya Law Firmhttp://www.blogger.com/profile/03518817565539400318noreply@blogger.com1