Trust
If a family member is appointed power of attorney, while the person is in a mental hospital and declared incompetent, can the power of attorney leally be named sole beneficiary of the Trust?
Re: Trust
I think it depends upon the authority of the person doing the naming. The person holding the power of attorney (the "attorney in fact") probably can't; that would be an obvious conflict of interest. The incompetent person can't do it, either. If there is a court-appointed guardian or conservator, that person could perhaps designate a beneficiary. Overall, this is an area where an extreme degree of caution and deference to the possibility of a conflict of interest, breach of fiduciary duty, or action outside of one's powers is required. The guardian or conservator should seek fact-specific legal advice from the court or other appointing agency, or from his or her own attorney.
