Legal Question in Wills and Trusts in Virginia
Restrictions on Power of Attorney
When a person appoints a power of attorney, can the appointee place any restrictions on the ''power''? For example: $20,000 is to be given to my grandson upon my death. The appointed power of attorney cannot/will not delegate any portion of the money left to my grandson to themself.
In other words, if I appoint my daughter POA and have a document (not in my will) stating that a specific amount of money is to go to grandson but my daughter feels she is entitiled to it, would she be able to take the money from my grandson?
What is the best course of action to prevent something like this happening when my daughter has access to all my accounts?
2 Answers from Attorneys
Re: Restrictions on Power of Attorney
You cannot utilize a POA(power of attorney-no matter what kind) to bequeath money (or anything else) to your grandson as the POA instrument expires upon the decease of the appointer(you).
A trust instrument specifically drawn for the benefit of your grandson(the beneficiary) containing the appropriate restrictions on the trustee's use of the funds would be the more plausible way to accomplish what appears to be your objective in this situation (i.e., limiting the boy's mother's use of the funds).
The trustee(the boy's mother) would be charged with administering the trust for the benefit of your grandson(the beneficiary) under whatever restrictions which you set forth in the trust instrument.
Re: Restrictions on Power of Attorney
The person who creates the power of attorney can put all kinds of restrictions on the power. A power of attorney can be limited as to time and/or what the agent ("attorney in fact") can do.
But you speak about what could happen after you die. A power of attorney is only valid while you are alive. If you have a "durable" power of attorney then it can stay in effect should you become disabled. But once the power of attorney becomes invalid once you die.
However, if you put your assets in a revocable living trust then you successor trustee (the person who steps in after you die) can manage the money for your grandson and no one (including your daughter) can have access to your grandson's funds. The trustee would have full control over the $20,000 distribution to your grandchild (it can be distributed in full after a certain age, or a certain can be distributed per year).
If you have more questions about revocable living trusts, speak to an attorney who specializes in this area.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
