Your power of attorney can only make changes to your living trust if you specifically grant them that authority.
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by Ronna L. DeLoe, Esq.
Ronna L. DeLoe is a freelance writer and a published author who has written hundreds of legal articles. She does...
Updated on: March 14, 2024 · 4 min read
Granting someone a power of attorney (POA) gives the person you designate the right to take care of common financial matters for you. However, if the POA document fails to include the power to change your living trust, your agent doesn't have the right to do so.
Attorneys draft financial POAs so that your agent receives the rights and powers you want to confer. Types of financial POAs include:
Rights under a general or durable POA depend on how your attorney drafted the document as well as the governing state law. Some of the common rights a financial POA has on behalf of the principal include:
A revocable living trust is an estate-planning tool, created by a trust agreement, that allows you to place your property in a trust with the right to use the property during your lifetime. The trust's “settlor" is often the original trustee, or the person who manages the trust.
Upon the settlor's death, a successor trustee takes their place and distributes the trust's property to the named beneficiaries in accordance with the trust agreement.
If you want to give your agent the power to change your living trust, or change something such as bank account beneficiaries, you must specifically grant these rights in your POA document. Any type of financial POA can list these powers, but it must specifically outline the powers or the agent will be unable to exercise them.
In some states, your agent must have both a POA document and a trust agreement allowing them to change a living trust. However, many states allow an agent to change a living trust if that power is only contained in the POA document. In other cases, after the POA grants the agent the power to change the trust, the agent can execute a release for the trustee to sign, which allows the agent to access property that's inside the trust.
If you want your agent to handle financial matters inside the trust, it's also possible to make your POA the trustee. You should first be confident that your agent is completely trustworthy, as they're not monitored unless someone brings a lawsuit for mismanagement.
Once your agent has the right to change your living trust, they can make changes under the right circumstances, such as in a divorce, when a beneficiary is no longer alive, or if a child has been born. If the reason is legitimate, the POA can make changes so long as they're protecting your best interests.
You can have your agent change your trust in several ways, which include the following:
No matter how your agent changes your trust, it's important to involve an estate attorney to help make the changes. If you give your agent the right to change your trust in the POA document, make sure it's done correctly, using an experienced attorney to make necessary changes.
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