Have a Trust? You Still Need a Power of Attorney

Given that both trustees and your hand-picked agent under your Power of Attorney document can deal with your financial matters, do you need both?

Yes! First, your trustee only has authority over your financial assets that are held in your Revocable Trust, and chances are not all of your financial assets are in your Revocable Trust.

Second, when you file your annual income tax return, any income earned by your Revocable Trust is included on your personal return. Your trustee can’t file an income tax return on your behalf, but the person to whom you’ve granted your Power of Attorney power – your so-called attorney-in-fact – can file your income tax return.

Because a trustee holds legal title whereas your attorney-in-fact does not, third parties are sometimes more comfortable dealing with a trustee than with an attorney-in-fact. Thus, bank accounts may be readily handled by your attorney-in-fact, but real estate and your business may be better served by the trustee.

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Disclaimer: This Blog is for informational purposes only and is not to be construed as legal advice. If you have questions, please seek the advice of an attorney licensed to practice law in the state where you live. Wittenburg Law does not expressly or implicitly warrant the accuracy or reliability of any of the Blog’s contents. An attorney-client relationship is not formed by reading this Blog. If you are interested in Wittenburg Law’s representation of you, you must contact Wittenburg Law for a determination of whether your matter is one for which Wittenburg Law is willing and able to accept representation of you.

Bonnie Wittenburg, Wittenburg Law Office, PLLC, 601 Carlson Parkway, Suite 1050, Minnetonka, MN 55305         952-649-9771     bonnie@bwittenburglaw.com   www.bwittenburglaw.com