Estate Planning can be messy. As parents, we always would like to believe that our children will always be the darlings of the world, perfect in every way, guiltless and void of fault (“Not my Amy…she could NOT have done such thing!) We raise them, teach them, tutor them, coach them, teach them manners, etiquette and every moral standard that we as fine parental human beings adhere to- and then they grow up.
Recently, in the Westchester New York area that has been a flurry of news about the estate of the now deceased Socialite Brook Astor and her son Marshall, accused of grand larceny and exploiting his mothers estate for his own financial benefit by absconding with a portion of her $200 million dollar estate. While her son’s thievery involved a broad range of tactic ranging from misdirection of funds to simply stealing her artwork right off her walls, the intricacies of his ill-fate plan does not mean you are immune to the same type of treatment by those whom you thought were acting in your best interest. What you say…it could never happen to me? Not my Darlings?
Let’s backtrack. You did a good job on your estate planning- you did your Will, Living Will, Health Care Proxy, Durable Power of Attorney…WHOA- did you say you did your Durable Power of Attorney? Good job…but do you really know what you signed?
A Durable Power of Attorney gives another person of your choice the power to act in your best interest in the case you are not available or able to act for yourself. This may include the inability due to mental incapacity, or you simply broke your writing hand and can’t sign checks temporarily. Other powers may include signing income and gift tax returns, transfers, real-estate transactions, gifts, and a host of legal items you may have done for yourself, The hitch is that while the assigned person (the Agent) has the power, they have the legal right to do what they may in your best interest, and, in the case of the above, not necessarily in your best interest. While I am an advocate of this document in the course of financial planning, be sure you know who you give this power to, as it can be potentially devastating in the wrong hands. Giving someone this power is a gift of love and trust- be careful you don’t give the gift that keeps on giving. Consult your Certified Financial Planner™ and estate attorney to see if this document is applicable to you.
