QUESTION
If a POA gives the power to create a revocable trust, can the agent create an irrevocable trust instead?
Asked on Jan 14th, 2013 on Estate Planning - Texas
More details to this question:
This occurred in Texas. A power of atty was issued granting the agent the authority to create a revocable trust. Instead, the agent created and signed as POA an irrevocable trust. PLEASE RESOND BY EMAIL THANKS IN ADVANCE
1 ANSWER
Kevin Spencer
Mr. Johnson:
I would have to see the Power of Attorney to tell you for sure. But, based upon your question as you have written it, the answer to your question is: "NO". The attorney-in-fact was not granted the authority to create an irrevocable trust and, therefore, exceeded his/her authority and the purported irrevocable trust woudl be invalid as an irrevocable trust ab initio (from the beginning). It is that simple. But, again, I would have to see what the other provisions of the power of attorney say and what other authority may have been granted.
Sincerely,
Kevin Spencer
www.spencerlawpc.com
Answered on Jan 20th, 2013 at 8:54 PM