A Vermont durable power of attorney authorizes an agent to make financial choices on behalf of the principal and remains effective throughout the principal’s lifetime unless revoked. The principal can’t use this form for health care or guardianship matters.
Laws
- Statute: Title 14, Chapter 127 (Vermont Uniform Power of Attorney Act).
- Presumed Durable: Yes (§ 4004).
- Signing Requirements: The principal must sign (§ 4005).
- Notarization: Notarization is required.
- Statutory Form: Yes (§ 4051).
Definitions
Durable – Not terminated by the principal’s incapacity or unavailability (§ 4002(2)).
General Power of Attorney – Refers to a POA that isn’t limited by its terms to a specified transaction or series of transactions, a specific set of assets, or a specific purpose (§ 4002(5)).
Specific Powers and Limitations
Restrictions on Gifts and Transfers
An agent can make a gift to an individual or for an individual’s benefit, including a contribution to a prepaid tuition plan or tuition savings account under 26 U.S.C. § 529, a contribution to an account under the Vermont Uniform Transfers to Minors Act, or a gift to a trust (§ 4047).
The agent should only make a gift of the principal’s property if they know it’s consistent with the principal’s objectives. If the agent doesn’t know the principal’s objectives, they should use the following factors to make financial decisions for the principal:
- The principal’s estate plan.
- Evidence of the principal’s intent.
- The principal’s personal gift-giving history.
- The inheritance, income, estate, or gift tax consequences.
- Whether the potential gift could result in the principal lacking sufficient assets to cover the principal’s needs during any period of Medicaid ineligibility.
- How the gift impacts the principal’s access to care, housing options, and general welfare.
Agent’s Authority Limitations
The agent can only complete specific acts on the principal’s behalf or perform certain actions with the principal’s property if they have explicit permission and no other agreement prohibits it (§ 4031). Some of these acts include the following:
- Terminate, revoke, amend, or create an inter vivos trust.
- Make a gift.
- Change or create a beneficiary designation or rights of survivorship.
- Delegate the authority granted under the POA.
- Waive the principal’s right to be a beneficiary of a joint and survivor annuity.
- Authorize another person to exercise the granted authority.
Furthermore, under the same section, only an agent who is a descendant, spouse, or ancestor of the principal can exercise authority to create an interest in the principal’s property for themselves or an individual whom the agent owes a legal obligation of support. This includes making gifts by disclaimer, beneficiary designation, right of survivorship, gift, or otherwise.
Safekeeping and Registration
You only have to record your DPOA in the land records office, which is in your town or city clerk’s office, if it assigns real estate-related authority. Please ensure that there’s a copy in an office for each city in which you have property.
Otherwise, you have flexibility when it comes to storing your document. Consider providing a copy to your agent and keeping one for yourself. You may also entrust copies to an attorney or a bank where you conduct most of your financial affairs.
Additional Resources
- VTLawHelp.org: Provides example documents to reference when filling out yours.
- Vermont State Bar: Offers a guide to help individuals manage their future finances.
- Vermont Legal Aid: Helps low-income residents handle their civil legal matters, including DPOA document creation.
