When you create a financial power of attorney, the person you select as your agent will have to deal with third parties on your behalf. Many of these third parties are often hesitant to accept powers of attorney because of the potential liability involved if the third party makes a mistake. You can make it easier for yourself, your agent, and third parties by taking some practical steps to ensure no problems arise with your financial power of attorney.
Tip 1: Make it Legal
Unless your financial power of attorney complies with all state laws, there is no reason any third party will have to accept it. At the very minimum you need to have your power of attorney reviewed, and preferably prepared, by your attorney to ensure it is compliant with all relevant laws and regulations.
Tip 2: Make it Specific
Your financial power of attorney can be very broad or very limited, but either requires you to be very specific about the kinds of powers you pass. If, for example, you want your agent to only handle some limited responsibility, you must state this clearly.
Tip 3: Contact Ahead of Time
Some institutions have specific requirements of their own that may not be clear to you when you make your power of attorney document. If you know your agents will have to interact with a specific third-party, it’s often a good idea to contact that third party ahead of time and ask what you can do to make the power of attorney compliant with their own procedures.