Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

Power of Attorney Gifting Powers Could Leave You Penniless

Posted on Wed Aug 10, 2016, on Power of Attorney

From our Ask a Question” Mailbag: Power of Attorney Gifting Powers

Most Recently Updated August 9, 2018.

“I am a Pennsylvania resident. Can my son use my power of attorney to give away all my property?”

Power-of-Attorney-Abuse

Power of Attorney Gifting Powers

What Power of Attorney Gifting Powers Have You Given Your Agent?

A Durable Power of Attorney gives your “Agent” the right to make financial decisions on your behalf during your lifetime.  Each power of attorney can be unique.  I need to examine your actual document to answer the question, can your son use that particular document to legally make gifts to himself, but here are some facts.  A durable power of attorney can give your son the right to make unlimited gifts.  In other words, your Power of Attorney could allow your son to legally leave you penniless.

Your Power of Attorney May Give Your Agent The Legal Authority To Leave you Penniless

This is why you should never sign a Power of Attorney without considering the gifting powers.  My clients willusually decide on one of three options. (1) no gifting powers at all, (2) limited gifting powers, or (3) unlimited gifting powers.

Consult With An Experienced Estate Planning Attorney To Determine What Gifting Power Fits Your Situation

Your specific situation will dictate the best option.  For example, if you give your Agent no power to make gifts, then if you are ever incapacitated your agent arguably cannot use your money to pay your child’s college tuition.  In that case, a limited power to make gifts would be appropriate. You can also give your spouse an unlimited right to make gifts, but limit any subsequent Agent.  No gifting power is best when you want your heirs to only get what funds exist at your death.  Your Agent is then limited to use your funds for your care.

Reasoning through what gifting power best fits your situation is often skipped by estate planning lawyers. This can lead to avoidable estate litigation.  Take the time to think through the power to make gifts.  I suggest that you send me a scanned copy of your power of attorney and schedule a phone conference.  I can then explain what power to make gifts your son holds.

More Planning Questions?

Power of Attorney Gifting Powers is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: Power of Attorney Gifting Powers

I hope that this article was helpful in explaining Power of Attorney Gifting Powers. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!

 

Tags:

Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Gifting Powers, Pennsylvania, Power of Attorney

Peter KlenkPeter Klenk

What Our clients are saying

Klenk Law Logo
Stars

Qiana Wright

Great friendly staff

Klenk Law Logo
Stars

Brian M.

Peter explained a complex subject very clearly, helped us to decide the best approach to managing our estate and then made it very easy for us to execute the required documents. He will be a valuable resource for years to come and clearly has a great understanding of estate law that will lead to innovative solutions for us. I would unhesitatingly recommend him for estate planning.

Klenk Law Logo
Stars

Chris Curcio

Fantastic customer service. Very personable and most importantly they provide great explanations of what is required based on your individual needs. Highly recommend Klenk Law for anyone that needs to create a will and estate documents.

Klenk Law Logo
Stars

Maxine G.

Peter Klenk made a complex subject understandable and allowed us to move forward with our estate planning. He was patient with our questions and creative in the solutions he proposed.

Klenk Law Logo
Stars

Ellen G.

I have had Peter Klenk prepare and revise my will. Always professional, knowledgeable and offers great advice. Highly recommend

Let us put our expertise to work for you.

Free consultation within 24 hours.