Read More: Confidentially Speaking: Disclose Or Not? — North American Title Insurance Company
Over the years, the power of attorney has become ubiquitous, an inexpensive estate planning opportunity for someone with modest means (the Principal) to give another person (the Attorney-in-Fact) the right to act as his or her agent in real estate or financial transactions and other personal decisions. A power of attorney, if used responsibly, can be an invaluable and legal tool that empowers the Principal by designating the Attorney-in-Fact to make important decisions at a time the Principal is unable to choose or make such decisions. Use of a power of attorney, however, is not always a panacea for the Principal or ideal for the title insurer who may face increased underwriting risks. This authority to act is not foolproof, and when it fails or is challenged, disastrous consequences for the Principal and the title insurer can follow.