FAQ Friday: Gifting Language
On Friday, January 26th, attorney Paula M. Mattson-Sarli and paralegal, Sabrina Coughlin discuss the gifting language in the power of attorney form.
There is a new form-based power of attorney form that came out in 2010 was recently updated in October.
Gifting language is extremely important, especially in cases of elder law. Though not everyone needs this written in their POA. It should be included when there is a specific purpose.
Sometimes there is tithing to their church, a pattern of gifting to charities or even when it is expected that their estate will produce tax owed, then we would consider some possible transfers to do that. Having this language in a POA would allow the agent to continue in the person’s interest even once they lose capacity.
Special concerns regarding gifting sometimes are presented. One of the broadest powers is unlimited gifting which is usually in the event of the need to qualify for Medicaid. However, this can sometimes open up that person to financial exploitation. We need to make sure the agents chosen are very trustworthy. Regardless, this is very important language.
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