A Power of Attorney for Property is an important estate planning tool. It allows your designated agent to make financial decisions for you. A Power for Attorney for Property can be used in conjunction with a Revocable Trust. If you become disabled, but you haven’t had a chance to transfer your properties into your Trust, your agent can transfer your assets to your Trust for you. Thereafter, your property will be managed by your successor trustee.

A Power of Attorney for Property can also be helpful if you are disabled and you have chosen not to create a Revocable Trust. In that situation, the Power of Attorney can be used to make some fundamental choices for you.

However, there are certain disadvantages with Powers of Attorney. Undoubtedly, you’ve seen news reports about how someone tricked an elderly widow and stole her home and bank accounts from her. In almost every case, the widow signed over control of her property when she signed a Power of Attorney. As a consequence, many banks and institutions are reluctant to honor a Power of Attorney for Property. In many situations, they require that their own special form be used if they are unfamiliar with the parties.

Although a Power of Attorney for Property can be helpful, in most cases it does not replace the more widely accepted Revocable Trust during times of incapacity.