Legal Question in Wills and Trusts in New Jersey

Re: poa

POA supercedes any Will language as a Will is revocable and be changed up to date of death. Depending on what is authorized, it is possible that holder of POA can take all assets and use them for holder of POA, unless the POA restricts who can benefit from actions of the POA holder. POA expires on death of person granting it, but only to the extent the person/entity receiving its use is aware that maker has died. Thus, if a bank, for example, does not know the maker has died, the holder could use the POA to close the account, if authorized by the language of the POA.

Re: poa

A power of attorney, to whomever it is given, allows the appointed agent to act with all the power that the person making the appointment can act. Power of attorney is effective only during the lifetime of the person who makes it; provisions of a will become effective only after death of the testator/testatrix. Therefore, one does not supersede the other, because the powers do not overlap.

If the power of attorney is a general (meaning that it gives broad powers), durable (meaning that it remains effective even if the person giving it becomes incapacitated) power, and not limited to only after the person is incapacitated, then, yes, the person holding the power (the agent), can "wipe out" the assets of the person who gave the power. The person who gave the power can also withdraw it at any time, but it is difficult to notify everyone to whom the poa may be presented that it is not longer effective. Advertising the withdrawal might help in giving notice to "the world."

The person who gave the power must also be vigilant, checking all bills and statements received, to make sure that someone else is not accessing credit or bank accounts. If the address to which statements are sent has been changed, the person must contact the creditors to (1) tell them that the poa is no longer effective (if it is being withdrawn), and (2) to send all statements to the original address. It would also be advisable to get copies of credit reports, to see if any additional credit accounts have been opened in her/his name.