Durable Power Of Attorney For Finances

To prevent abuse of a Power of Attorney: First and foremost, appoint a person or persons that you trust.

To help make sure a trusted person does the right thing, consider the following suggestions:

• Name more than one person as agent. Require that the people you appoint agree before exercising any of the powers. This will allow for a system of checks and balances and make it more likely that your best interest will remain paramount. Be aware that this arrangement may also slow things down if something has to move quickly.

• Provide that the agent has to provide a summary of financial actions and a copy of bank/securities statements to someone else. For example, if you appoint your brother as agent, require that he provide a summary of his financial actions every 3 months to your cousin.

• Ask the bank or other financial institution in which the money is kept to watch for unusual transactions. If there is an unusual transaction, the bank should report to you or to another trusted person.

• Have a duplicate of all statements sent to a person you trust - for example, an accountant or a bookkeeperor a friend who is financially savvy. 

• Limit the person's authority. For example, allow the person pay your bills, but not change the beneficiary of your life insurance.

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