Power of Attorney: The Most Important—and Potentially Riskiest—Document in Your Estate Plan

There’s a document I talk about with almost every client, and it rarely gets the attention it deserves. It’s not a will. It’s not a trust. It’s your Power of Attorney.

Let me be clear: everyone—yes, everyone—should have one. But it’s also one of the easiest legal tools to get wrong, and the fallout when it goes sideways? That’s where things can get painful, fast.

Let’s break it down.

What is a Power of Attorney—and Why Do You Need One?

A Power of Attorney (POA) allows someone you choose (called your “agent” or “attorney-in-fact”) to make financial decisions for you if you’re unable to do so. In Nebraska, these documents are typically durable, meaning they stay in effect even if you become incapacitated—which, to be honest, is usually the whole point of having one.

Think: you’re in a coma after a car accident, living abroad for a few years, or starting to experience memory loss. Without a POA in place, no one—not your spouse, not your kids, not your best friend—can legally step in to manage your bank accounts, pay your bills, or file your taxes. Instead, your family would have to go to court and request guardianship or conservatorship, which is expensive, invasive, and time-consuming.

A POA avoids all of that. It’s a quiet little safety net sitting in the background of your life. Until it isn’t.

Where Things Go Wrong

Here’s the reality: this document gives someone total control over your money and property. And unless you’ve put up safeguards, they can use that access however they want.

I’ve seen agents who drained retirement accounts. Took out loans in someone else’s name. “Gifted” themselves thousands of dollars. Or quietly siphoned off bits and pieces over the years, assuming no one would notice.

And sometimes, no one does.

Nebraska law (like most states) requires that an agent under a POA act in your best interest. They have fiduciary duties: to keep your property separate from their own, to keep good records, to act loyally and in good faith. But the law doesn’t come knocking on their door to make sure they’re doing that. Oversight only happens if someone notices something’s wrong and has the money and energy to take them to court.

That’s why I say it’s one of the most dangerous documents you’ll ever sign. It’s a blank check, and you’d better trust the person you’re giving it to.

How to Protect Yourself

Here’s what I tell every client:

1. Be ruthlessly honest about who you’re choosing.

Pick someone trustworthy, organized, and financially responsible. Not someone who’s struggling to pay their own bills. Not someone who’s easily manipulated. And definitely not someone who thinks “it’s all going to be mine someday anyway.”

2. Name a backup—or two.

If your primary agent dies, becomes incapacitated, or just doesn’t want to do the job, you need a successor agent named in your document. Otherwise, you’re back at square one.

3. Consider a limited or springing POA.

These give your agent powers only for a specific time, task, or condition (like when a doctor certifies you’re incapacitated). In Nebraska, these are valid and can offer a little more peace of mind.

4. Think about co-agents.

You can name two people to act together. Nebraska law allows this, and while it can be a hassle for them, it also provides natural accountability. Just make sure they can work well together—or you’ll be trading one problem for another.

5. Be ready for red tape.

Even with a valid POA, some banks or institutions might still demand their own forms or extra steps. That doesn’t mean your POA is broken. It just means you’re dealing with bureaucracy. Having a well-drafted, Nebraska-specific POA can help cut through some of that friction.

6. Review regularly, especially after major life changes.

New job? New baby? New state? Divorce? Death of an agent? All of these are great reasons to pull out your POA and make sure it still makes sense.

One Last (Crucial) Note

In Nebraska, your POA must be signed in front of a notary to be valid. And while you can include a provision for your agent to be compensated, it’s not automatic. If you want them to be paid, spell it out.

The Bottom Line

A Power of Attorney is like a fire extinguisher—you hope you never need it, but if you do, it better work. And more importantly, it better not backfire.

Appoint someone you trust. Build in backups. And if you’re not sure whether the POA you have actually protects you—or if you don’t have one at all—let’s talk. This is the kind of planning that saves your family from stress, courtrooms, and expensive cleanup down the road.

Because financial abuse is easy to commit. Fixing it? Not so much.

If you’re ready to have someone help you with this, contact me at 402-259-0059 or zach@zandersonlaw.com.