Attorney Power Of Attorney 4

Question 1

An agent under a POA wants to purchase the principal's house for themselves at a below-market price. This transaction is:

Accepted Answer

Generally prohibited as a self-dealing transaction unless the POA expressly permits it and the principal consents

Answer

Self-dealing — an agent transacting with themselves on the principal's behalf — is a breach of fiduciary duty unless the POA expressly authorizes it and informed consent is obtained.

Question 2

Which statement best describes a 'co-agent' arrangement in a power of attorney?

Accepted Answer

Two or more agents appointed simultaneously, who may act independently or jointly as specified

Answer

Co-agents are multiple persons simultaneously appointed as agents, with the POA specifying whether they must act jointly or may act independently.

Question 3

A bank refuses to honor a validly executed durable power of attorney. Under the UPOAA, the principal's recourse includes:

Accepted Answer

Seeking a court order compelling acceptance and potentially recovering attorney's fees

Answer

The UPOAA provides that a court may order a third party to accept a POA and may award attorney's fees and damages when refusal is unreasonable.

Question 4

The 'successor agent' clause in a power of attorney refers to:

Accepted Answer

An alternate agent who steps in if the primary agent is unable or unwilling to serve

Answer

A successor agent is a backup designated to serve if the primary agent resigns, becomes incapacitated, dies, or is otherwise unavailable.

Question 5

Which of the following powers requires explicit authorization under most modern POA statutes and is NOT implied by a general grant of authority?

Accepted Answer

Creating or amending the principal's revocable trust

Answer

Trust creation and amendment is a hot-power requiring express authorization because it can substantially alter the principal's estate plan.

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Attorney Power Of Attorney 4