Minnesota Power of Attorney

Minnesota Power of attorney is a very important estate planning document and helps Minnesota residents with financial transactions during someone’s lifetime.

In essence, the power of attorney allows third-party to act on behalf of another person, for all manner of legal transactions. These transactions can include financial transactions, banking transactions real estate transactions, business transactions, fiduciary transactions, estate planning transactions, and all manner of financial transactions that want might arise in life.

Short Form Power of Attorney

Many estate planning attorneys in Minnesota use the statutory short form Power of Attorney. This is codified in Minnesota Statute, Chapter 523. There are durable powers of attorney and some states refer to health power of attorney, as well. In Minnesota, we refer to the health care power of attorney as the health care directive. This is also sometimes referred to as living will. This article will not discuss health care powers of attorney.

Benefits of a Power of Attorney

The main benefit of a Minnesota power of attorney is allowing the chosen third party or parties help someone cannot be present or is otherwise incapacitated. An example of a financial transaction that a power of attorney may help with closing on real estate.

Closing on a Home

For example, in a home purchase, there are often two buyers. The buyers are often husband and wife. In some cases, the husband or wife cannot be at the closing. If the parties had a power of attorney, only one party would need to be present in closing to sign the final documents. The husband could sign for the wife or the wife could sign for the husband. Minnesota law allows for this. It is that simple.

Helping Elderly Parents

Another example that a power of attorney is helpful for is banking transactions. Our office has advised many clients who have elderly parents.

The elderly parent may lack mental capacity by reason of Alzheimer’s or dementia diagnosis. If the children are the power of attorney for their elderly parents, they can help the parent with financial transactions. Using the power of attorney, the child would go to the bank and write checks for the elderly parent to pay a mortgage or other bills.

“Least Restrictive Measure”

We have also advised clients that using a power of attorney is qualified as a “least restrictive measure”. This means that it is the simplest method of helping a elderly parent instead of asking a Minnesota Court for a guardianship or conservatorship.

Minnesota law requires that all parties seek least restrictive measures prior to filing for guardianship or conservatorship. The the power of attorney is a lesser restricted measure because the courts are not involved, there are no court-reporting requirements, and it is a simpler way to deal with financial transactions.

This is a very beneficial way for individuals to conduct estate planning. Working with an Minnesota estate planning lawyer allows the client to choose their power of attorney rather than having further court involvement. As most people know, court involvement is expensive and time consuming.

Duties of a Minnesota Power of Attorney

A power of attorney is a fiduciary. This is a legal term which means that the power of attorney must only serve the benefit of the person that appointed them.

For example, as discussed above, many elderly parents may appoint their child as power of attorney. The child must only serve the best interest of their parents. The child cannot participate in self dealing, fraud or misrepresentation. Unfortunately, it is relatively common that power of attorneys are abused. The power of attorney may take money from the person that appointed them for their own benefit. This is a fraudulent and criminal activity.

Is this something that you are concerned about? If you suspect someone is abusing their power, as a power of attorney, you should contact law enforcement or an attorney. Unfortunately, money can disappear very quickly.

Power of Attorney Accounting

In most instances the chosen the power of attorney is honest and diligent. The person may be required to do an accounting of their actions to person who appointed them.

The accounting could be in the form of simply writing down when transactions take place and the date of the transaction. Or, the accounting can be similar to an Excel spreadsheet or other financial data entry transactions with very detailed information. A more formal accounting would require bank statements and other evidence of transactions.

However, accounting is not always required. The person who appointed the power of attorney has the choice of whether or not they would like monthly or annual accounting. An accounting can also be supplied to a professional such as an accountant or attorney.

Final Thoughts

In conclusion, everyone should keep in mind that a Minnesota Power of Attorney powerful legal document. It appoints a third party to serve on behalf of someone else.

The appointed power of attorney has duties to a person that chose them. The power of attorney serves as a fiduciary and is required to account for their actions.

If you have questions about how to help a loved one with the power of attorney or you are concerned that a power of attorney is being used inappropriately, you should contact a Minnesota estate planning lawyer.