You ever wonder why the Power of Attorney drafted by your lawyer is so cotton-pickin’ long? After all, a two-line document would meet the rubrics of the statutory requirements. Is it because lawyers get paid more if the document is longer? Nope. It’s because, if your lawyer leaves out any possible economic transaction, it could come back to bite the client (and, worse (smile), the lawyer). Exhibit A: In Barnett v. United States, No. 07-cv-844, 2009 WL 2426246 (W.D. Pa. May 27, 2009), the court determined that gifts made on behalf of the principal by his agent did not qualify for the annual exclusion because the power of attorney did not authorize the gifts. Accordingly, because the principal died, these gifts were brought back into the estate.

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