Powers of Attorney are often drafted using boilerplate language. However, with the now $5.43 million Federal estate tax exemption, many Powers of Attorney may need to be revised in the way they address gifts made by agents. Prior to the increased exemption gifting by agents was more beneficial, but now it is likely not needed or can be exploited as has been seen by the increase in financial elder abuse. Even for individuals that still need estate tax considerations included in their Powers of Attorney, reviewing and individualizing the directions for how gifts should be made can be beneficial.
See Martin Shenkman, Do Powers of Attorney Need New Gifting Rules?, Financial Planning, Apr. 14, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
