The Dangers of Powers of Attorney
Good article in this morning's Wall Street Journal entitled "How to Ensure Relatives Don't Rip You Off." It's available here (registration may be required).
People have a visceral reaction to things like probate and guardianships, assuming that they are a waste of time and money. A court process may take up time and money, but it also can provide protections that non-probate mechanisms can't. If you pick the wrong executor or guardian, the court will protect your interests and make sure this person is doing his or her job correctly. If you pick the wrong agent under your power of attorney, you may wake up and find that your estate has been looted, with very little ability to get your assets back. Ditto with picking the wrong trustee.
The solution is not to forego estate planning -- rather, the solution is to think very carefully about who should act as your fiduciary and, if necessary, to impose checks and balances on this person.
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