Section 8.45 Gifting

• Library: Trusts and Powers 2013 Supp

K. (§8.45) Gifting

Few powers granted in a DPA have the potential for abuse like the gifting power. A broad gifting power can result in frustrating the principal’s estate plan or disqualifying the principal for Medicaid assistance. Before incorporating the gifting power into an instrument, counsel should discuss some of the implications and potential problems with the client. The power to gift, if desired, must be enumerated in the instrument; unless it is, any gifting made by the attorney in fact could be declared void, potentially frustrating estate tax planning and asset protection planning for the principal.

Perhaps the biggest issue to address is whether attorneys in fact can make...