Some Gifts to Those Holding Power of Attorney Are OK, Says Vermont Court

Fiduciaries that receive gifts from those that they hold that special relationship with are under heightened suspicion. This includes those that have power of attorney. This is complicated by the fact that many that hold power of attorney are family members, and the gift may just be a gift.

In Shaffer v. Kaplan, the United States District Court for theDistrict of Vermont held that some gifts from the principal to the person holding power of attorney are allowed. The court found that only gifts that involve undue influence will be considered self dealing and thus be presumed invalid.

See Luke Lantta, Holding Power of Attorney Doesn’t Prohibit All Gifts From Principal to Agent, Bryan Cave Fiduciary Litigation, July 8, 2014.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.