We are working remotely and all of us continue to be available by telephone or email. In alignment with national, state and local initiatives as it relates to the coronavirus, we remain open for business and have changed the way we are working for the health and well-being of our employees, and you, our valued clients and colleagues. Read more

Mason & Helmers
We Welcome Your Call
  • Phone 651-323-2548
  • Toll Free 877-389-5533

Are there restrictions on an attorney-in-fact's self-dealing?

Many residents of Saint Paul may at some point in their lives have to resort to relying on an attorney-in-fact in order to help them maintain their property. Minnesotans can appoint an attorney-in-fact by creating and signing a valid Minnesota power of attorney that gives the attorney in fact the right to make important financial decisions for the protected person.

The best way to prevent difficulties is for a person to be careful about whom they appoint as their attorney-in-fact. Usually, a trusted friend or relative who has the time and ability to make good financial decisions is the best choice. However, even people who were seemingly trustworthy can, when given responsibility over a lot of money, succumb to the temptation to dip in to the money and use it for personal reasons rather than for the benefit of an estate.

In Minnesota, some types of this sort of self-dealing are permissible. For example, under Minnesota law, an attorney-in-fact has permission to engage in self-dealing so long as the person creating the power of attorney expressly agrees that the attorney-in-fact has that power. In such instances, the attorney-in-fact is limited in how much he can give himself; how much he can give is the exact same amount as how much federal tax rules allow a person to give another person annually without having to report the gift.

The idea behind this law is that a person may want to be sure that a family friend or relative who is serving as an attorney-in-fact gets a gift every year, and this rule allows a person to arrange for such a gift will still enjoying peace of mind knowing that an attorney-in-fact cannot legally give extravagant gifts to herself.

However, when naming an attorney as the attorney-in-fact, the gift tax exclusion is not the only thing limiting him or her, as the attorney also has a duty to always act in the principal's best interests. 

If a Minnesota resident believes that she or a loved one have the been the victim of self-dealing, a probate litigation attorney may be of valuable assistance.

No Comments

Leave a comment
Comment Information

For Assistance with Estate Disputes & Other Matters, Contact Us

To learn more about the firm and how we can assist you,
contact Mason & Helmers in St. Paul, Minnesota. Call 651-323-2548 or 877-389-5533 (toll free) to set up an appointment.

*AV®, AV Preeminent®, Martindale-Hubbell Distinguished and Martindale-Hubbell Notable are certification marks used under license in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell® is the facilitator of a peer review
rating process. Ratings reflect the anonymous opinions of members of the bar and the judiciary. Martindale-Hubbell® Peer Review Ratings™ fall into two categories — legal ability and general ethical standards.

Contact Our Attorneys

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Email Us For A Response
Mason & Helmers

Mason & Helmers
332 Minnesota Street
Suite W-3070
St. Paul, MN 55101

Toll Free: 877-389-5533
Phone: 651-323-2548
St. Paul Law Office Map