Power of attorney

  • Thread starter HW \Skip\ Weldon
  • Start date

H

HW \Skip\ Weldon

I realize that this is a legal question, but it also is a financial
planning question. So here goes.

Person executed and registered general power in county of residence at
the time of execution.

He then moves to another county in the same State. He no longer owns
real property of any kind anywhere.

For other purposes granted in the power, is the power still valid?

-HW "Skip" Weldon
Columbia, SC
 
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D

Doug

My experience with power of attorney docs is that they are never
"quite right". The bank has THEIR OWN power of attorney, or some other
document that has been worded by "their lawyers", so the power of
attorney you have isn't good enough. When push comes to shove, ie, the
deal will not happen without them honoring the power of attorney, they
frequently relent, just to get the deal done. I am not the only one
that has had these experiences, my lawyer echoes the same sentiment.

So long as the deal is being done in the best interests of the person
who has signed the power of attorney, and no one complains, sues etc,
the point is moot, the deal gets done, and the power of attorney
works. I don't have enough experience to tell you when a power of
attorney can be successfully attacked, (that is a deal UNDONE based on
invalid power of attorney) but I suspect it is when some party is, or
thinks they have been injured and remedies are sought. Then only the
lawyers and the court can tell.

I have seen a case where power of attorney that said "purchase" allow
the wife to "purchase and encumber" where the wife was purchasing the
house with a loan and the husband/soldier was overseas. The deal went
through. After all, it was what the soldier wanted and the bank wanted
the deal to go through. This is just an example. You see the wife was
acting in her husbands best interest and he wasn't likely to complain
later on. But the initial reaction was she couldn't do it, had to say
encumber too. The bank president overroad the bank policy in this
case.

So sign the power of attorney, make it as broad and general as you
can. Don't do it if you don't trust the person to do right by you, and
hope for the best. In the above case I don't think they would have
done the deal if she didn't have the power of attorney. So a "wrong"
power of attorney is better than none at all.
 
T

tom

Should be valid.

Caveats: Unless there is very specific and unusual language limiting it, in
which case it should be apparent. These are creations of state law, so SC
or wherever this was done might have something unusual in it. Another
poster noted that some institutions honor only their own.
 
M

Michael T Wing CPA

Doug said:
My experience with power of attorney docs is that they are
never "quite right". The bank has THEIR OWN power of attorney,
or some other
document that has been worded by "their lawyers", so the power
of
attorney you have isn't good enough.
I've seen the same thing. People tend to draft their POAs to be
as broad and general as possible, then the financial institutions
argue that it doesn't confer SPECIFIC authority for the act in
question. But, I'm sure if you did it the other way, including a
very long list of specific actions, the institutions would
~still~ find some reason to complain.

MTW
 
H

HW \Skip\ Weldon

I've seen the same thing. People tend to draft their POAs to be
as broad and general as possible, then the financial institutions
argue that it doesn't confer SPECIFIC authority for the act in
question.
Ditto here, giving me greater appreciation for qualified estate
planning attorneys who have page after page ad nauseum of approved
powers.

What I haven't bumped into, however, is where a person has given a
general power, a financial institution refuses to honor it, and the
person is now incompetent to sign another.

I guess the holder of the power is out of luck.
Have there been any tests of this?

-HW "Skip" Weldon
Columbia, SC
 
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Michael T Wing CPA

HW "Skip" Weldon said:
What I haven't bumped into, however, is where a person has
given a general power, a financial institution refuses to
honor it, and the person is now incompetent to sign another.

I guess the holder of the power is out of luck.
Have there been any tests of this?
In a case like that, I suppose someone would have to go into
court and seek appointment as "conservator" (if that's the proper
term). Sounds like a big fat hassle, and it's too bad that the
wishes of the individual involved as evidenced by the power of
attorney have been "ignored."

MTW
 

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