3 Take-Aways from a New Court Ruling

It takes trust to sign a general power of attorney. You are trusting someone else to make your financial decisions while you are still alive. It might be for convenience and it could be good planning if you become ill and can’t make your own financial decisions. But it still takes trust.

A Nebraska Supreme Court ruling released today, Cisneros v. Graham, 294 Neb. 83, highlights laws and rulings that help ensure your general power of attorney will not inappropriately act in their own interest. The Court acknowledged that there are “manifold opportunities and temptations for self-dealing that are opened up for persons holding general powers of attorney”.

Key reminders from this court ruling:

➢ An agent who is not your ancestor, spouse, or issue must have express authority in your power of attorney in order to create in himself or herself an interest in your property.

➢ If you are serving as a general power of attorney, make sure you understand what you are authorized to do.

➢ Before you sign a general power of attorney, carefully consider what you trust your agent to do.

This is general information and is not legal advice specific to your situation. You should visit with an attorney for advice that applies to you.