Two questions come up again and again from people acting under a Power of Attorney: “Can I gift some of this money?” and “Can I change who inherits?” Both feel practical in the moment. Both are also where well-meaning agents get into the most trouble. Here’s the plain-English version.
Start with the golden rule: it’s not your money
Everything an agent does has to be for the principal’s benefit, not the agent’s. That’s your fiduciary duty, and it’s the lens a court uses for every decision you make. Gifting and beneficiary changes are exactly where that duty gets tested.
Can a Power of Attorney gift money?
Sometimes — but only if the document specifically allows it, and even then, within limits. Many Power of Attorney forms are silent on gifting, and when they are, the safe assumption is no. Where gifting is authorized, it’s usually meant for narrow purposes — like continuing the principal’s existing pattern of giving — not for helping out the agent or the agent’s family.
Why so strict? Because gifting is the single easiest way for an agent to drain an estate, intentionally or not. Courts scrutinize it heavily. If your document allows gifts and you’re considering one, that’s a moment to document your reasoning and, ideally, talk to an attorney first.
Can a Power of Attorney change beneficiaries?
This one is even riskier. Beneficiary designations — on life insurance, retirement accounts, and payable-on-death accounts — decide who inherits, often overriding a will. Changing them reshapes the principal’s entire estate plan. Most Powers of Attorney do not grant this power, and where it exists at all, it’s tightly limited. Assume you cannot change a beneficiary unless the document explicitly and clearly says otherwise.
The safe path for any agent
- Read the document for the specific power before you act — don’t assume.
- If it’s not clearly granted, don’t do it. “The document doesn’t mention it” means no, not maybe.
- Document everything — what you did, and why it served the principal.
- When real money or the estate plan is involved, get advice. A short call with an attorney is cheap compared to undoing a mistake.
Want the full picture of what your authority does and doesn’t include? What can a Power of Attorney actually do? breaks down the powers and limits, and your state’s page points to the official sources where you live. When you want to talk through your own situation, a Private POA & Caregiver Consultation can help.
This article is plain-English education, not legal advice. Power of Attorney law varies by state, and reading it does not create an attorney–client relationship. For guidance on your specific situation, talk with a licensed attorney in your state.