• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Wilcox Attorneys, PA

Wilcox Attorneys, PA an Arkansas Estate Planning & Trust Information Center

Northwest Arkansas Estate Planning Attorneys (479) 443-0062

Client Vault
  • Home
  • Our Firm
    • Our Firm
    • About the American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Speaker Connection
  • services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • Secure Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Webinars
  • Practice Areas
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • Legacy Wealth Planning
      • Medicaid Planning
      • Pet Planning
      • Probate
      • Trust Administration & Probate
    • Newsletters
    • Pre Consultation Form
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog

Are There Disadvantages to Having a Power of Attorney?

June 12, 2014 by Deb Sexton Leave a Comment

There are a great many advantages to creating a power of attorney.  It is a legal document with which you can give someone you trust the authority to act on your behalf in many different situations.  The most common uses of this estate planning tool are for managing someone’s financial matters or health care decisions.

Even with all of its advantages, you should give careful consideration to the use of a power of attorney, as your agent will ultimately have full legal authority to act for you.  Therefore, it is critical that you select someone you believe is honest and trustworthy; someone whom you are confident will only act in your best interest.

Agents are not subject to direct oversight

The reality is, you do not have immediate control over your agent’s actions because he or she will have the authority to enter into transactions on your behalf without you being present.  Though an agent is required to follow your instructions, it is always possible for the agent to make mistakes, or, even worse, use the authority to defraud you.

For instance, if your agent has the authority to withdraw funds from your bank accounts, he or she could mistakenly withdraw from the wrong account.  Unfortunately, your agent could also withdraw money without your permission.  The bank will not be held responsible for the impermissible withdrawal, as long as the power of attorney the agent was acting under is valid.

Notice of revocation is required for all third-parties

Revoking a power of attorney is not difficult.  It only requires a written statement that the authority given by the document is being revoked.  The complication comes in providing notice of the revocation to all necessary parties.   Any third parties, such as banks and other entities with whom your power of attorney has been used, must be notified individually.  If this step is not taken, a bank or mortgage company for example, will still continue to deal with your agent as it always has.  Without proper notice that the power of authority has been revoked, your agent could potentially continue to act on your behalf at that institution.  Again, because the bank would have no way of knowing that your agent actually no longer has authority to do so, the bank could not be held liable for any unauthorized transactions in that situation.

If you have questions regarding a power of attorney, or any other estate planning needs, please contact Wilcox Attorneys, PA, online or by calling us at (479) 443-0062.

  • Author
  • Recent Posts
Deb Sexton
Latest posts by Deb Sexton (see all)
  • Estate Planning is Essential Whether You Are Married or Not - April 25, 2018
  • Income Tax Basis in Estate Planning – Part 2 - April 23, 2018
  • The Downsizing Generation: How to Handle a Surplus of Stuff When a Loved One Ages - April 18, 2018

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Wilcox Attorneys, PA

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Subscribe to Our Blog

Subscribe to our blog for all the latest estate planning news and updates!

Office Address

Fayetteville
2766 Millennium Drive
Fayetteville, AR 72703
Phone: (479) 443-0062

Office Address

Prairie Grove
1100 Division Street, Suite 4
Prairie Grove, AR 72753
Phone: (479) 846-6026

( By Appointment Only )

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM

Map

map for office
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

footer-logo

© 2023 American Academy of Estate Planning Attorneys, Inc.