A recent contested estate case in Maryland reinforced the importance of properly drafted and executed power of attorney documents. This victory for POA law serves as an important reminder of why careful estate planning matters—and why choosing the right attorney to draft your documents can make all the difference when disputes arise.
The Case in Brief
While we cannot discuss specific case details due to client confidentiality, this matter involved a challenge to actions taken by an agent under a durable power of attorney. The opposing party argued that the agent had exceeded their authority and that certain transactions should be invalidated.
After careful litigation, the court upheld the validity of the power of attorney and the actions taken under it. This outcome hinged on several key factors that estate planning clients should understand.
Why This Victory Matters
Validating Proper Documentation
The court’s decision reinforced that when power of attorney documents are properly drafted and executed according to Maryland law, they provide robust protection for both the principal and the agent. The specific language used in the document, the clear grant of authority, and proper execution formalities all contributed to this outcome.
Protecting Agents Who Act in Good Faith
Agents under a power of attorney often face difficult decisions, especially when the principal becomes incapacitated. This case affirmed that agents who act within their authority and in good faith are protected from liability—an important assurance for family members who take on this responsibility.
Deterring Frivolous Challenges
When courts uphold properly executed estate planning documents, it sends a message that challenges based on buyer’s remorse or family disagreements—rather than genuine legal concerns—are unlikely to succeed.
Lessons for Your Estate Planning
This case offers several important takeaways for anyone considering or updating their estate plan:
1. Choose Your Agent Carefully
The person you name as your agent under a power of attorney will have significant authority over your affairs. Select someone who:
- Is trustworthy and reliable
- Understands your wishes and values
- Is capable of handling financial matters
- Will act in your best interests, even under pressure
2. Be Specific About Authority
Maryland allows you to customize the powers granted to your agent. Consider whether your agent should have authority for:
- Real estate transactions
- Banking and investment decisions
- Business operations
- Gift-giving
- Trust modifications
- Healthcare decisions (separate document usually required)
The more clearly your document specifies the scope of authority, the less room there is for disputes.
3. Include Protective Provisions
Modern power of attorney documents should include provisions that:
- Require third parties to accept the document
- Indemnify your agent for good-faith actions
- Specify how disputes should be resolved
- Address compensation for the agent (if any)
4. Execute Documents Properly
Maryland has specific requirements for executing powers of attorney:
- The principal must sign (or have someone sign for them)
- Signatures must be notarized
- Some powers require witnesses
- The document should be stored safely but accessibly
5. Review and Update Regularly
Powers of attorney should be reviewed periodically to ensure they:
- Reflect current Maryland law
- Name appropriate agents (considering death, incapacity, or changed relationships)
- Include authority for new types of assets or transactions
- Still align with your wishes
When Challenges Arise
Despite the best planning, family disputes over estate matters do occur. If you find yourself facing a challenge to power of attorney actions, or if you believe an agent has acted improperly, several factors will be important:
For Agents Defending Their Actions
- Documentation of decisions and the reasoning behind them
- Evidence of the principal’s wishes and instructions
- Proof of proper execution of the POA
- Records showing actions were within granted authority
For Those Challenging Agent Actions
- Evidence of actions outside the scope of authority
- Proof of self-dealing or conflicts of interest
- Documentation of harm caused by the agent’s actions
- Expert testimony on proper fiduciary duties
The Value of Experienced Counsel
Whether you’re creating your initial power of attorney, updating an existing document, or facing a dispute over POA actions, having experienced legal counsel is essential. At Leffler, Bayoumi & Oliver, we:
- Draft powers of attorney tailored to your specific needs
- Ensure proper execution and storage
- Advise agents on their duties and authority
- Represent clients in contested estate matters
Taking Action
Don’t wait for a crisis to think about your power of attorney. If you don’t have one, you need one. If you have one that’s more than a few years old, it may need updating.
Contact our office to schedule a consultation and ensure your power of attorney documents will stand up when you need them most.
Need Legal Assistance?
If you have questions about this topic or need legal representation, our experienced attorneys are here to help. We work with clients throughout Maryland to provide practical guidance and effective advocacy.
Contact us to discuss your situation and learn how we can assist you.