20 Feb What is a Power of Attorney
A Power of Attorney is a legal document created by an individual, known as the principal, which grants another individual, known as the agent, to act on behalf of the principal’s personal, business, and financial matters. Power of Attorney documents is an important tool in the estate planning process. However, many people who are declared agent’s for another person do not know what responsibilities and powers this duty comes with.
WHAT CAN AN AGENT DO?
As an agent, there are several powers a Power of Attorney grants to the agent under the Ohio Uniform Power of Attorney Act. This statute gives the agent power to act on behalf of the principal in the following areas:
• Real Property
• Tangible Personal Property
• Stocks and Bonds
• Commodities and Options
• Banks and Other Financial Institutions
• Operation of Entity or Business
• Insurance and Annuities
• Estates, Trusts, and Other Beneficial Interests
• Claims and Litigation
• Personal and Family Maintenance
• Retirement Plans
• Taxes
WHAT MUST AN AGENT DO?
An agent must always:
• Act in good faith
• Act within the scope of the authority granted in the Power of Attorney
• Attempt to preserve the principal’s estate plan
• Maintain the best interests of the principal
• Disclose your identity as an agent whenever you act on behalf of an agent
If an agent fails to act in good faith or if an agent violates the Uniform Power of Attorney Act, then the agent may be liable for any damages that may arise from the agent’s violations.
TERMINATING AN AGENT
An agent’s duties are terminated if any of the following events happen:
• The death of the principal
• The principal’s revocation of the power of attorney or the agent’s authority
• The occurrence of a termination event stated in the power of attorney
• The purpose of the power of attorney is fully accomplished
If you have been made an agent under a Power of Attorney and have any questions, please seek legal counsel.
Authored By MacLaren Law
MacLaren Law LLC provides counsel for the estate and business planning needs of Columbus, Ohio and its surrounding communities.