Laws Regarding Texas Power of Attorney FormsThe Texas Power of Attorney Act was set forth in 2006 to help protect older Texans from fraud and unscrupulous behavior. When you create a durable power of attorney, you authorize someone else to handle your finances. In many tragic cases, parents have had money stolen by their attorney in fact.
Choosing Your Texas Power of Attorney Agent
One case occurred in California where an elderly woman's daughter applied for a $200,000 mortgage on her mom's home while her mom was hospitalized. In Minnesota, a woman stole more than $200,000 from her mother while acting as power of attorney agent. People would think their children would never steal from them, but sadly it happens.
When choosing your Texas power of attorney agent, consider asking the police to do a background check. Ask to see a credit report on the person before signing the power of attorney form. It is your money and you have the right to be selective and do your research.
Durable Power of Attorney Laws
In Texas, power of attorney agents must follow any terms set forth by the principal. As long as the agent follows these terms and acts in good faith, they cannot be held responsible for their actions. If they go against your terms and specifications, you can press charges.
A Texas power of attorney must be signed by a mentally fit adult and the agent must be a legal adult. Once you've completed the paperwork, go to a notary public office to sign and date the form. Two witnesses and the notary public should also sign the form to make it legal.
You can create a Texas power of attorney that takes effect after a specific date or event. You can also create a POA that only comes into effect after you become incapacitated.
You have the right to revoke the power of attorney when you wish providing you are mentally capable, if not your guardian has the power to do the revocation.
Divorce automatically revokes a power of attorney form if your spouse is your agent. The date the divorce is finalized marks the end of the attorney in fact's duties. Make sure you notify any third parties that have dealt with your former agent to prevent account fraud.
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