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Power of Attorney
Can a manager use power of attorney to gift property in New Jersey?

Can a manager use power of attorney to gift property in New Jersey?

Q: What are the requirements for power of attorney execution in New Jersey?

In New Jersey, a power of attorney must be in writing, signed by the principal, and witnessed by at least one person. The document should also include a statement indicating that the principal understands the powers granted. It is recommended to have the document notarized for added legal weight.

Q: Is a power of attorney transferable?

No, a power of attorney is generally not transferable. The authority granted to an agent is specific to that individual. If the principal wishes to appoint a different agent, a new power of attorney document must be executed.

Q: Does a POA need to be recorded in NJ?

In New Jersey, a power of attorney does not need to be recorded unless it is used for real estate transactions. However, recording may provide additional protection against disputes regarding the authority of the agent.

Q: What is a POA not allowed to do?

A power of attorney is not allowed to make gifts of the principal's property unless expressly authorized in the document. Additionally, the agent cannot make decisions about the principal's personal care or medical treatment without specific authority.

Full question:

My grandfather has executed a power of attorney of property in New Jersey to one of his managers. I came to know that the manager is secretly trying to gift my grandfather’s property to his wife. Can he legally do that by using the power of attorney?

Category: Power of Attorney
Date: 04/07/2025
State: New Jersey

Answer:

In New Jersey, an attorney-in-fact cannot transfer the principal's property unless the power of attorney specifically allows it. According to N.J. Stat. § 46:2B-8.13a, a power of attorney does not authorize the attorney-in-fact to make gifts of the principal's property unless it is expressly stated. A general authorization to perform acts does not include the authority to make gifts.

In this case, the manager cannot legally gift your grandfather's property to his wife using the power of attorney.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What three decisions cannot be made by a legal power of attorney?

A legal power of attorney cannot make decisions regarding the principal's divorce, change the principal's will, or make decisions about the principal's medical treatment unless specifically authorized. These actions typically require the principal's direct consent or specific legal provisions.

What are the disadvantages of being a power of attorney?

Being a power of attorney can involve significant responsibility and potential liability. The agent must act in the principal's best interest, and failure to do so can lead to legal consequences. Additionally, the agent may face emotional stress from making difficult decisions and may need to manage complex financial or legal matters.