Does a Power of Attorney Take Precedence Over a Trustee's Authority?
Full Question:
Answer:
If there is a trust already in existence, the named trustee will have control over trust assets and the agent/attorney-in-fact may have authority over all of the principal's assets (except trust assets). A trustee only has power over an asset that is owned by the trust.
A trustee may delegate their power to a third party by use of a power of attorney. However, the power of attorney would not constitute a delegation unless the document makes clear that the principal, as trustee, is appointing an agent to perform certain acts. The power of attorney must contain language clearly delegating authority for the agent to act in the principal’s capacity as trustee. A document which merely gives the attorney-in-fact power over the principal’s personal affairs is not sufficient to permit them to exercise authority over the trust. The specifics of the authority delegated will be defined by the trust document. A power of attorney generally doesn't amend the terms of a trust.