Legal Question in Wills and Trusts in Washington

Re: Power of attorney

There are two issues here: control versus ownership. A properly-executed power of attorney (�POA�) would give you fiduciary control over your grandmother�s account and many other aspects of her estate during her lifetime, if the document meets the statutory requirements in other regards, and has not been revoked by a newer document. In Washington state, the pertinent statute covering POAs is RCW 11.94 (On the Internet, you can review this law at the following link: http://apps.leg.wa.gov/RCW/default.aspx?cite=11.94 ). Other issues affect the validity of a POA: if your grandmother loses capacity to handle her own affairs, then the POA should be �durable,� meaning that it states plainly that it is intended to take effect upon, or continue to function, �notwithstanding [her] disability.� Remember also that POAs do not HAVE to be honored by third parties, absent a court order. They can also be challenged on the basis of overreaching, fraud, duress or incapacity; there is a growing trend of elder abuse through the unscrupulous use of POAs.

Adding your name to an account title with your grandmother, on the other hand, as �Joint Tenants, with Right of Survivorship,� could give you ownership AND control over that property only, upon her death, whereas the power of attorney ceases at that time. However, many people do not want to take the risks associated with placing a second person on property titles, including bank accounts. There can be unwanted tax consequences, or the assets could become vulnerable to the claims of the second person�s creditors or spouse. (Cherished family cabins have passed over to the family of a child�s surviving spouse because an elderly parent granted joint title to an adult child who quickly and unexpectedly followed that parent in death.)