Limits on Agent Creating or Modifying Trust

            Unless specifically stated an agent under a financial power of attorney can NOT create or modify a trust.    The restriction is similar to not allowing an agent to make a Will for a principal.  If authorized the agent could modify an existing trust, create a new trust, withdraw assets from an existing trust or name a new trustee.   The more specific the grant of power the more likely the power will withstand later scrutiny.  Granting an agent the power to deal with trusts will allow the agent  to implement plans to pass assets outside of probate on the death of the principal, hold assets for a beneficiary that needs help in handling the assets and modify provisions in an existing trust that does not meet changed circumstances.  Obviously an unscrupulous agent could abuse his or her power to enrich him or herself with the power to create or modify trusts.   However if a principal intends to enable an agent under a financial power of attorney to deal with all of his or her assets then the agent should be allowed to make sure trust assets fit into a plan that meets the current and future needs of the principal.