Divorce, Part 3 of 7: Update Your Power of Attorney

Your Power of Attorney is a document that gives the person you name (your “Agent”) legal authority to deal with your assets.

In Oregon, divorce does not automatically revoke an ex-spouse’s appointment as your Agent (it does in Washington).  It is very important to revoke your Power of Attorney and to sign a new one.

Tip:     If you have given out any copies of your Power of Attorney, you should try to find them and destroy them.  Most Powers of Attorney provide that a copy is just as good as the original.

The purpose of a Power of Attorney is to allow someone to access your bank accounts, pay your bills, etc., if you needed assistance.  However, some Powers of Attorney are effective to immediately give your agent these powers, whether or not you immediately need their help.  Some attorneys prefer this form of a Power of Attorney because financial institutions are more likely to accept it.  A Springing Power of Attorney is one that is effective only if you are incapacitated.  There are more “hoops to jump through” when it comes to actually using this document because different institutions may have different rules for using the Springing Power of Attorney.

Your Agent should be someone you trust implicitly.  The main reason that financial institutions examine Powers of Attorney closely is that these documents have often been misused to steal from the person who created the Power of Attorney.  Your Agent is legally required to only use his/her powers for your benefit.  However, if s/he misuses that power, it can be difficult to get the money back.

Tip:     You should sign a new Power of Attorney every couple years, even if you don’t change anything.  The older a Power of Attorney is, the less likely a financial institution is to honor it. 

Review your Power of Attorney with your lawyer.  You will likely want to revoke it and sign a new one.