Granting someone power of attorney over your financial assets can be quite stressful, especially with so many cases of theft on the news recently. Whether you entrust a loved one or a third party with your finances, there seems to be a large risk of having your finds mismanaged or even stolen. The good news is that there are steps you can take to prevent this. Even if you are entrusting a loved one with your money, setting limitations on the power of attorney is a prudent decision.
When you create power of attorney for a family member, it is best to draft a legal document detailing the ways that your money may be handled. Ideally, you will want the money used only for medical care, housing, and your living expenses. Drafting a list of permissions is an excellent way to ensure this. To ensure that your money can be easily tracked and spending followed, you may also want to ensure that your funds are not allowed to be placed into any account that contains funds belonging to other parties. This can go a long way in preventing fraud and theft.
While you may think that granting power of attorney is completely safe, there is always risk of fraud when there are no limits as to how your money may be handled or spent. Creating a simple and legal document that clearly dictates this can do much to protect you. Inform your bank of the types of debts to be paid from your account, and ask that any odd looking expenses be marked or tracked. It is ultimately up to you to do what it takes to protect your assets. You have worked hard for your money, and taking the steps that you need in order to protect it is something that everyone should take the time to do.
