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Under a power of attorney, can my agent make a gift on my behalf?

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Under a power of attorney, can my agent make a gift on my behalf?

Question: Under a power of attorney, can my agent make a gift on my behalf?

Answer: Under your durable power of attorney an agent can make a gift on your behalf. This is a very important issue for estate and gift tax purposes because the IRS has taken the position that if a gift is made and the general power of attorney did not authorize the person to make the gift then the gift would be considered invalid for estate and gift tax purposes. In addition if you are trying to specifically provide for Medicaid planning you would need to provide that the agent be authorized to transfer all of your property even to the person that owns the power and that has to be provided for specifically in the power in order for that person to be able to do some Medicaid planning for you in the even that you become disabled.


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