Power of Attorney Suggestions

The problems that may arise with a durable power of attorney for property management are highlighted in Pamela Yip, Be picky to make sure power of attorney is honored, Dallas Morning News, May 12, 2008.

The article outlines some of the reasons why a financial institution or other business may be hesitant to honor a power of attorney such as:

• The financial institution may not be familiar with the person given power of attorney and may be worried about fraud.
• The institution may be concerned that the power of attorney has been revoked. * * *
• There’s a risk that the person given power of attorney may exceed his or her authority.

To increase the likelihood of acceptance, the following steps are suggested:

• [G]et to know the people at the companies you do business with and introduce them to your named representative.
• Give them original copies of the power of attorney for their files.
• Some banks may require you to fill out their own power of attorney form.  To assuage third parties’ fears of getting sued, the Texas Statutory Power of Attorney indemnifies them for any claims that may arise from their honoring the document.
• To ensure that you get it right, consult a lawyer to craft your power of attorney, and don’t let it get stale. Update it at least every two years to ensure that it still reflects your wishes. * * *
• Be very specific as to when you want the power of attorney to take effect. * * *
• Use precise language to give your representative the authority he or she needs to act on your behalf but back that up with broad general authority. * * *
• Do all this while you’re still healthy and of sound mind.

Special thanks to J. Barrett Shipp (The Law Office of J. Barrett Shipp, San Antonio, Texas) for bringing this article to my attention.