Can an attorney-in-fact make gifts of the principals money to the principal’s loved ones, including the attorney-in-fact?
This depends on the wording of the power of attorney and on the laws of the state in question. Some state statutes require gift-making powers to be indicated on the document. That is, the power of attorney must authorize the attorney-in-fact to make gifts. In those states, the attorney-in-fact cannot act without the specific authority to do so. A well-drafted power of attorney will specifically give the attorney-in-fact the right to make gifts (assuming that the principal wants to give the principal that authority). The power of attorney may limit the amount of the gifts or the people to whom the attorney-in-fact may make gifts. If, on the other hand, the document does not give the attorney-in-fact specific authority, but it does give him or her a general grant of power to stand in the principal’s shoes and do whatever he or she may do, the attorney-in-fact still may be able to make gifts if the law in the state in which the attorney-in-fact resides allows this. Just remember that the
