Roughly a third of adults 65 and older are economically insecure, which translates to incomes below 200% of the Federal Poverty Level. Many of these seniors also suffer from a variety of ailments that can affect their judgment or ability to utilize their savings.

One of the best ways to address both of these issues is to give someone else power of attorney. However, plenty of misconceptions exist about it, such as who can override a power of attorney document.

Here are some of those power of attorney myths addressed and debunked.

Power of Attorney Explained

A legal power of attorney document grants another person the right to handle certain tasks on your behalf. That includes depositing checks at your bank, filing taxes, or even selling your home.

There are two types available for use in Oklahoma: a power of attorney for finances and one for health care. As the names imply, they both cover two separate areas of a person’s life that they may require assistance managing.

Having a power of attorney document for finances does not give a person the right to manage the health care of the principal. The same applies to someone with a power of attorney for health care who wants to manage finances as well. They are two documents you would have to acquire separately.

Your lawyer can tell you more about various power of attorney facts, such as your limitations. You may also want to get advice when dealing with a veteran, who may have access to various services.

Who Can Override a Power of Attorney?

There are two main ways to override a power of attorney. The first is via the person who gave power of attorney to another individual, also known as the principal. If they are of sound body and mind, they can revoke or change the POA as desired.

The second way to override a power of attorney is if a person can prove that the principal was not competent when they signed over their privileges. They can also provide proof that the agent is not acting in the principal’s best interests.

Besides those two options, there isn’t much a family member or friend can do outside of a courtroom. At best, they may convince the agent to give up their power of attorney to someone else.

Common Legal Misconceptions

There are many power of attorney myths that people believe based on rumors or the spread of misinformation. It’s important to understand what a person with POA can do and their limitations. This can help protect both the agent as well as the principal of the agreement.

Power of Attorney Gives Unlimited Authority

The first misconception is that power of attorney gives a person unlimited control over the principal’s affairs. However, that is nowhere close to the truth.

How much control a person has over the principal will depend on the type of POA they have received. Financial power of attorney only gives them control over finances. A healthcare POA only allows for control over healthcare decisions.

In addition, there are types of POA that only allow agents to perform specific tasks, such as selling properties or handling a single financial transaction.

If the principal dislikes how their chosen agent has handled their finances or medical care, then they have the option to revoke the power of attorney.

A Power of Attorney Cannot Be Changed

As previously mentioned, the principal can take away the power of attorney they have granted to another person. Along the same lines, the principal is the person who must transfer ownership of a POA to another person.

A competent principal can have their attorney prepare a document in advance naming more than one agent in the POA. They can then use this alternate if the first agent can’t act or resigns.

Later on, the principal can change their POA by revoking it in writing and notifying the agent. They’ll need witnesses and/or a notary during this process. The principal can then create a new POA document with a new agent.

Anyone Can Override a Power of Attorney

The thing to understand about a power of attorney document is that they are given by the individual. A person cannot decide to obtain power of attorney without the other individual’s consent. As such, the principal is the one person who can remove power of attorney without much issue as long as they are of sound mind.

It’s different than something like guardianship, which is appointed by the court and can only be taken away by the court. The principal will find it much easier to revoke the POA as long as they have witnesses and a notary.

The Agent Has Unlimited Access

Even if a person gains power of attorney over another person’s finances, that doesn’t mean they have unlimited access. They are obligated by law to act in the best interest of the principal. Their fiduciary duty means they must avoid conflicts of interest and keep their own finances separate from the principal’s.

Misuse of the principal’s funds or investments can set off red flags and lead to serious legal consequences.

A Power of Attorney is Only for the Elderly

A very common myth is that a power of attorney agreement is only for elderly individuals. The truth is that anyone can sign over power of attorney to another person. It’s a valuable option for people of any age for many different reasons, including:

Going in for a risky surgery
Accidents or sudden illnesses
Ensuring financial diligence while in retirement
Major changes in business

If you do move a senior relative into an assisted living community, that does not forfeit their financial rights. You cannot default into a power of attorney agreement. It must be given with consent.

Be Careful With Your Power

Power of attorney is not something to give away too quickly to the wrong person. The only person who can override a power of attorney with ease is the principal, but they may not be of sound mind to do so.

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