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What Does Power Of Attourney Over Money Mean

What is Power of Attorney?

The thumbs down troll has been busy.

A Power of Attorney is an appointed person over your affairs, of YOUR CHOOSING, this means the POA can make decisions on your behalf, if your unable to.

However to be a POA the person appointing a POA must understand what the implications of having a POA.

There are different types of POA's, each having clear guidelines on what the POA can or cannot do, that includes spending or taking the persons money, without good reason, sadly there are people who do abuse this, and that of the rights of the person they are supposed to protect and support.

Most POA's etc do require the POA to submit a financial report etc every year, to ensure that the POA is not being greedy.

I am unsure where you are but here is some legal links which explains what a Guardianship, POA etc are, and how you would go about applying for one.

What Does Power Of Attorney Mean?

There are two main types of 'power of attorney'.

#1. LIMITED power of attorney
This means that you can sign paperwork or make decisions on this person,s behalf. These powers can be date specific

#2. FULL power of attorney
You have every legal right that this person has. Primarily these are financial. Usually a person needs to revoke this power in writing.

What does the term 'power of attorney' mean in absolute layman's terms?

In simplest terms: it's allowing someone else to act as you in ALL matters, to the extent that you can at any given moment.Both the first and second clauses to this definition are important.  The first is important because without limitations, the person granted the POA (an "Attorney In Fact", AIF) can do ANYTHING you can do.  Signing contracts is but one of many things - they can make healthcare choices, too.  Which is the reason why most POAs are drafted as "Limited POAs" because the document limits the powers being granted.  There are also specialized versions of POA, such as a "Healthcare POA".The second clause is important, too, though.  If you are impaired at a given moment, the person in whom you've vested POA power is ALSO impaired.  So if you have a Healthcare POA, for example, and then are knocked unconscious, technically, the AIF loses their ability to make decisions related to your care because your lack of consciousness impairs your ability to make those decisions, and the AIF's power is likewise impaired.This is the reason for "Durable POAs" or, more specifically "Durable Healthcare Power of Attorneys".  This grant gives the AIF unfettered power over your care, even if you are impaired.  This is a VERY dangerous thing to give to someone and shouldn't be done lightly or without significant discussion with the AIF so that they understand what you want done to yourself (and are willing to do it).There have been several cases where the AIF acts according to their OWN belief structure (rather than that of the grantor - "Principal").  And depending on the law of the state in which everything is happening, and the language of the POA document itself, it's possible that the AIF's decision will stand, even against the known wishes of the Principal.

I gave my wife power of attorney over my money. She gave a huge sum of my money to her parents. Was it wrong for her to do this?

Was your wife wrong to send a substantial amount of money to her parents without consulting you first?Yes, she abused her position as power of attorney and committed financial infidelity. If it transpired that my parents were struggling with debt, living a hand to mouth existence, and it happened that my husband & I could help them, I would talk to him first, and hope that he was compassionate enough to agree to help with a monetary figure he was comfortable with.If I was married, I would consider my husband’s parents as my own and hope he would feel the same way about mine too. That's my definition of family.Currently she has lost your trust, which is a hard pill to swallow. To save your marriage, if I were you, my primary concern is why my wife felt the need to go behind my back, surely I would have found out eventually when I reviewed the account?Did she:Want to avoid confrontation/Fear asking you.Know you wouldn't have agreed to let her parents have the money.Realise she was in the wrong, and apologised for not discussing transferring the money.While I agree she was in the wrong. I don't know the full circumstances and the sort of person your wife is apart from this incident to pass judgement on her.Is this the first time she has ever been deceitful? Remember we marry our partners for rich or for poor.What I suggest you do:Communicate with her openly and honestly with regards to her financial infidelity.If she's bad with money, help to educate her.If you're still unhappy take away her power of attorney.Kind regards,Abi

What does it mean limited power of atterany?

I believe you mean "power of attorney". If you give someone your "power of attorney", that means you have given them complete control over all of your business and personal matters. They can sign your checks, have access to your bank accounts, savings account, and they can sell your property. When you give someone power of attorney, they pretty much can control your life.

Power of attorney is usually given to a child, by a parent, when the parent is elderly and no longer has the ability to make decisions regarding the family finances. It becomes a great access for the children, to not have to go through the court process to have legal permission to handle the parents business.

A limited power of attorney, will allow a specific person to have specific limits to your business or personal life. Such as, giving someone the right sell your car, but not the right to keep the money from the sale. A limited power of attorney, limits this person to what ever you choose for them to do for you.

How do I Cash a check with a Power of Attorney?

First, you have POA over his legal affairs, not over him.
The PROPER way for an Attorney in Fact (the person granted authority in the POA) to endorse a check payable to the principal (the person granting the POA) is the sign the principal's name followed by "by (your name) as POA". The bank need to have actual knowledge that the POA exists. In your case, I recommend exercising your authority as Attorney in Fact to open an account in your uncles name. The check can be deposited into that account, which you would control via the POA, with less appearance you are misappropriating the funds.

If someone has guardianship or power of attorney?

over an elderly relative does that give them the right to throw the elderly person in a nursing home . and to have that elderly person to pay for staying at that nursing home with her own money.and right before she was thrown into the nursing the guardian / three other co conspirators moved the elderly lady table / dresser out of her home / moved their funiture / clothes / etc into her the meantime the guardian has been spending this lady money like crazy.when they put her into this nursing home the guardian kept her id / checkbook / credit card / address book.and did'nt tell any family members where she was at. my question is this is'nt this fraud / what action can be taken to stop four people from running thru all of this womans money.and can she add asomeone else as a guardian /or as a power of attorney.

Is it normal for an insurance company to ask for power of attorney?

Yes it is normal protocol.

The power of attorney will be for that specific vehicle. Once they get the title from the bank, they will use the power of attorney to sign the seller blank on the back of the title. Then they can put the title in their name.

Unless you want to drive to their office and meet them in person to sign the seller blank- it's the only way to handle it.

The documents the insurance adjuster is getting from the bank: a letter of guarantee and copy of the title. The letter of guarantee says that if the insurance company sends them $x.xx then the bank will send the title to the insurance company. The copy of the title is needed so that the adjuster can send it to you so you know how to sign the POA. (Your name has to be signed just like on the title).

When a car is a total loss, first money goes to the bank. If there is any left over (equity) then that goes to you.

The insurance company will send the check to the bank. The bank will apply that to your loan and send the title to the insurance company. The insurance company will use the power of attorney to put the title in their name. (When you total loss a car, you sell the car to the insurance company. So they have a title issued showing them as the owner). They need the POA to do that. Once the adjuster has the POA and Title, he will send you your equity (if you have any).

They will pay the full agreed upon amount.


Because insurance companies have a legal obligation to act in good faith. Additionally, the companies expect their adjusters to act in good faith.

But, if you still insist on being paranoid (and you are being paranoid) ask the adjuster to include a letter with the power of attorney confirming the amount of the settlement.