As a person ages and becomes impaired by medical problems, it is common for the impaired person to want a trusted family member to manage their financial affairs. Often this means putting the trusted person’s name on financial accounts as a co-owner or co-signer. Many husbands and wives are co-owners of financial accounts with rights of survivorship - a very common tool of convenience and estate planning. However, there are numerous reasons why placing a non-spouse family member as a co-owner on a financial account is not prudent. The potential for misunderstandings and conflicts within the family is very high. A better approach is to give the trusted non-spouse person a Durable General Power of Attorney, and/or where appropriate, a Limited Power of Attorney, to help with managing assets.
A Power of Attorney is a written document whereby a Principal party (the person delegating authority to another) designates a person as his/her Agent to act as the Principal’s legal representative. The delegation of authority can be very broad (General Power of Attorney), limited in scope (Limited Power of Attorney), or very restrictive (Special Power of Attorney).
An important consideration in drafting the Power of Attorney is how long the Power of Attorney will be effective. A Power of Attorney, and authority of the Agent, terminates upon the death of the Principal party. A Durable Power of Attorney will continue to be effective even if the Principal party becomes incapacitated during his/her lifetime.
The Power of Attorney can be revoked by the Principal party at anytime. The revocation of a Power of Attorney needs to be in writing, delivered to the Agent, with written notification of the revocation given to all third parties who have recognized and/or accepted the Agent as the Principal's legal representative. If a Power of Attorney has been recorded with the county clerk, the revocation needs to also be recorded with the county clerk.
A Power of Attorney has the potential of being misused, and there are many examples of an Agent misusing the authority of a Power of Attorney. The Agent is in a fiduciary relationship with the Principal, but some Agents seem to be able to rationalize their inappropriate actions by some self-serving conjectured benefit to the Principal.
A Power of Attorney can be a very useful lifetime estate planning and asset management tool, but it can also be a catalyst for future conflict within a family - proceed with caution. Before doing a Power of Attorney, both the Principal and Agent should seek the advice of a knowledgeable experienced attorney about the advisability and scope of the proposed use of a Power of Attorney.
For a knowledgeable, experienced, and cost-effective
Elder Law and Power of Attorney Lawyer, contact
Larry K. Gray & Associates, P.C. Larry K. Gray has
been helping clients for more than 36 years.
Larry K. Gray & Associate, P.C.
404 East First Street Phone: (503) 538-1350
Newberg, Oregon
Fax: (503) 538-6957
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Geographical areas, Oregon Counties and Cities, wherein Larry K. Gray & Associates, P.C. provides legal services as an Elder Law, Guardianship, and/or Conservatorship Lawyer:
Yamhill County, Elder Law, Guardianship, and/or Conservatorship Lawyer:
Elder Law Attorney Newberg Oregon 97132, and the surrounding areas of Dundee Oregon 97115, Yamhill Oregon 97148, and Carlton Oregon 97111; Elder Law Attorney McMinnville Oregon 97128, and the surrounding areas of Lafayette Oregon 97127, Dayton Oregon 97114, Amity Oregon 97101, Sheridan Oregon 97378, Willamina Oregon 97396, and Grand Ronde Oregon 97347.
Washington County, Oregon Elder Law, Guardianship, and/or Conservatorship Lawyer:
Elder Law Attorney Sherwood Oregon 97140, and the surrounding areas of King City Oregon 97224, and Tualatin Oregon 97062; Elder Law Attorney Beaverton Oregon 97007, and the surrounding area of Tigard Oregon 97223; Elder Law attorney Hillsboro Oregon 97123, and the surrounding area of Cornelius Oregon 97113, Forest Grove 97116, North Plains 97133, Banks Oregon 97106, and Gaston Oregon 97119.
Clackamas County, Oregon Elder Law, Guardianship, and/or Conservatorship Lawyer:
Elder Law Attorney Wilsonville Oregon 97070, and the surrounding areas of Canby Oregon 97013, Aurora Oregon 97002, and Molalla Oregon 97038; Elder Law Attorney Lake Oswego Oregon 97035, and the surrounding areas of West Linn Oregon 97068, and Tualatin Oregon 97062; Elder Law Attorney Oregon City Oregon 97045, and the surrounding areas of Gladstone Oregon 97027, and Damascus Oregon 97089.
Marion County, Oregon Elder Law, Guardianship, and/or Conservatorship Lawyer:
Elder Law Attorney Woodburn Oregon 97071, and the surrounding areas of St. Paul Oregon 97137, Donald Oregon 97002, Hubbard Oregon 97032, and Gervais Oregon 97026; Elder Law Attorney Keizer Oregon 97303, and the surrounding areas of Brooks Oregon 97303, Silverton Oregon 97381, and Mt. Angel Oregon 97362: Elder Law Attorney Salem Oregon 97301 97302 97396, and the surrounding areas of Stayton Oregon 97383, Aumsville Oregon 97325, Sublimity Oregon 97385, Turner Oregon 97392, and Jefferson Oregon 97352.
Polk County, Oregon Elder Law, Guardianship, and/or Conservatorship Lawyer
Elder Law Attorney Dallas Oregon 97338, and the surrounding areas of Fall City Oregon 97344, Rickreall Oregon 97371, Sheridan Oregon 97378, Willamina Oregon 97396, and Grand Ronde Oregon 97347; Elder Law Attorney West Salem Oregon 97304, and the surrounding areas of Monmouth Oregon 97361, and Independence Oregon 97351.