Can power of attorney be given to collect taxes?
Full Question:
Answer:
A power of attorney may be given to any adult who will act in the fiduciary capacity for the principal (person who gave the power).
A limited power of attorney allows the principal to give only specific powers to the attorney-in-fact/agent which can include financial matters such as taxes. The limited power of attorney is used to allow the attorney-in-fact/agent to handle specific matters when the principal is unavailable or unable to do so. The power of attorney cannot be revoked until notice is given. Therefore, if the principal wishes to revoke the power of attorney he/she should send a written notice of revocation to the acting attorney-in-fact/agent and to all third parties relying on the authority of the acting attorney-in-fact/agent.
A power of attorney will cease to be effective when the principal dies. If there is concern that something may happen to the principal, particulary death, other plans should be arranged such as a last will and testament or living will.
