Gloucester, VA asked in Estate Planning for Virginia

Q: Why would one make their family bank the power of attn. of their estate and family business

When my father died my mother gave the POA of her estate and family business instead of my brother who works at the business or me, her daughter. I do not work at the family business

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1 Lawyer Answer
James H. Wilson Jr.
James H. Wilson Jr.
PREMIUM
Answered
  • Estate Planning Lawyer
  • Glen Allen, VA
  • Licensed in Virginia

A: Many banks have trust departments. Some folks pick banks as their trustee, guardian or attorney-in-fact because the trust departments have skilled, knowledgeable, full-time, professionals who understand their fiduciary duties and all the reporting requirements. Money, and money management, can cause conflicts between family members. Some testators or settlors are also concerned about their family-member beneficiaries' ability to manage funds and treat each other fairly and objectively. Some beneficiaries are spendthrifts and might lose funds to creditors or spend the money on unwise purchases. A spendthrift trust or discretionary trust can protect funds from a spendthrift's creditors, and limit disbursements to certain purposes.

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