Powers of Attorney — With great power comes great responsibility

In The Perilous World of POA Agents, 96 Ill. B.J. 398 (2008), Helen W. Gunnarsson explains how even “good” agents have a difficult time complying with statutory requirements and fiduciary duties as they carry out the often thankless job of handling a disabled principal’s financial needs.

Here are some of the key points made in the article:

• Despite “evil” agents getting tremendous press about their wicked actions, the vast majority of agents are truly acting with their principals’ best interests at heart.
• Attorneys should spend more time educating their clients to explain to their proposed agents the true scope of the task that awaits them.
• Agents should seek legal advice before accepting the position.
• Agents need to realize their job may last many years and perhaps decades.
• The burden of proof is often on the agents to prove they acted properly.
• Family members may criticize a well-meaning agent whom they think is “spending their inheritance” on the principal.
• Principals may not appreciate the agents’ efforts on their behalf.
• Key mistakes agents make include:
  • poor recordkeeping,
  • failed family diplomacy,
  • commingling funds, and
  • disposing of assets at death without authority.