Can a POA state that the principal has no control of finances?

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Can a POA state that the principal has no control of finances?

Asked on June 7, 2015 under Estate Planning, Iowa

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Not even remotely: the attorney-in-fact (that's the term for the person granted authority pursuant to a power of attorney) has no power to overrule, supercede, etc. his or her principal; and furthermore, the principal can revoke (or limit, if he/she doesn't want to revoke entirely) the attorney-in-fact's power at will...which means that the POA document cannot enforceably state that the principal has no control over finances. If someone does want to give up all control over his/her finances, he/she should set up an irrevocable trust and in the trust, can give the trustee certain parameters (such as spend money for food, housing, and medical needs but nothing else; keep the beneficiary on a strict budget; etc.) which will accomplish this.


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