There is often some confusion about gifts and expenses which can be accepted under a Power of Attorney. Here we look at some of the issues.
What is a Lasting Power of Attorney?
It is a legal instrument which allows a trusted individual to take actions on your behalf. There are two kinds, one relating to property and finance and the other health and welfare. If you would like to find information about a power of attorney online, you can refer to specialists such as powerofattorneyonline.co.uk.
Are gifts and expenses allowed under a power of attorney?
Attorneys’ actions are governed by strict rules and they must always make decisions in the donor’s best interests or inline with their stated wishes. However, sometimes attorneys breach the rules which apply to them innocently.
Expenses and gifting make up the majority of these incidents. Attorneys often believe that they can recover expenses, but only reasonable and proportionate expenses can be recovered, and in some cases, these may require approval by the court.
Also, there is the issue of gifting. Attorneys are not managing their own money, but rather the monies of the donor and they cannot treat it as they would their own finances.
How a trail is created
Even though some of the expenses which an attorney incurs or gifts they have made from the donor’s estate may be small and seem insignificant, they soon create a trail which could lead to charges of financial misconduct.
It is important, therefore, to make sure that as an attorney you seek advice before acting.
