Prince Law Firm
Call For A Consultation
Toll Free 866-383-1125
Local 248-419-1968

Limitations on those with power of attorney in Michigan

Michigan residents often desire to be in charge over their own affairs. Most people want to be able to handle their own money, their own property and their own healthcare decisions. Many people can go their entire lives without needing help from anyone in making these decisions.

However, there are times when people are unable to make decisions on their own. For example, if a person has an accident and becomes incapacitated, that person may need another person to make medical decisions on their behalf. If someone has power of attorney over the injured person, then these decisions can be easily made.

Some may think that if they give another person power of attorney that the person will be able to do whatever they want. While it is true that a person with power of attorney has a lot of freedom when making certain decisions, Michigan law does restrict the power of attorney in some important ways.

For example, under section 700.5501 of the Michigan Estates and Protected Individuals Code, a person with power of attorney cannot make a gift of the principal's assets unless the person is specifically given the power to make such a gift. Additionally, a person with power of attorney cannot enter into a joint account with the principal without express consent.

The attorney-in-fact must also keep the principal informed of the person's actions and decisions. The person must also keep exact records of how investments, distributions and other financial transactions are made. Finally, the attorney-in-fact needs to take all reasonable steps to follow any instructions given by the principal.

Assigning a power of attorney can be an important part of an estate plan. People need to understand the powers that the person would have as well as their limitations. An attorney can help people understand these roles.

No Comments

Leave a comment
Comment Information

How Can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Our Office

Prince Law Firm
800 W. Long Lake Road, Suite 200
Bloomfield Hills, MI 48302

Fax: 248-865-0640
Bloomfield Hills Law Office Map

Connect with us

  • Facebook
  • Twitter
  • Linkedin
  • Google+
VISA | Master Card | American Express | Discover Network