Can My Power of Attorney Make Gifts in Ohio?

Brandon Harmony
Jul 15
4 min read

Direct Answer

A financial power of attorney does not automatically authorize your agent to make gifts on your behalf. In Ohio, gifting authority depends on the language of the power of attorney itself. Because gifting can significantly affect your estate plan, it is one of the powers that deserves especially careful consideration when creating a financial power of attorney.

Most people think of gifts as birthday presents or holiday checks to family members.

In estate planning, however, gifting authority can involve much more significant financial decisions.

For example, making gifts may affect Medicaid planning, tax strategies, or the distribution of your estate. Because of those potential consequences, it is important to understand when an agent may make gifts and when they may not.

In Ohio, estate planning is about giving trusted individuals enough authority to help you without unintentionally giving away more authority than you intended. If you're trying to understand your options, you can learn more about Estate Planning in Ohio.

If you're trying to understand how this applies to your situation, you can schedule a free 10-15 minute call with an attorney here.

Ohio estate planning attorney explaining gifting authority under a financial power of attorney

Gifting Authority Is Not Automatic

One of the biggest misconceptions is that an agent can freely give away your money simply because they have a financial power of attorney.

That is generally not true.

A financial power of attorney only grants the authority contained in the document itself.

While some documents authorize limited gifting, others do not. Whether your agent has that authority depends on the language of the power of attorney and applicable Ohio law.

Because gifting can significantly affect your finances, it is important that the document clearly reflects your wishes.

If you're unfamiliar with the authority generally granted under these documents, What Can a Financial Power of Attorney Do in Ohio? explains the financial responsibilities an agent may be authorized to perform.

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Gifts Should Further Your Goals, Not the Agent's

Even when a power of attorney authorizes gifting, your agent cannot simply give your money away because they think it is a good idea.

An agent has a fiduciary duty to act in your best interests and within the authority granted by the document. For example, gifting authority may sometimes be used as part of a broader financial or long-term care planning strategy. In other situations, making gifts could conflict with your estate planning goals or reduce the assets available for your own care.

The purpose of gifting authority is to carry out your wishes, not the personal wishes of your agent.

Gifting Can Affect Your Estate Plan

Many people do not realize that gifts made during their lifetime can affect what ultimately passes to their beneficiaries.

Large gifts may reduce the assets available under your will or trust. They may also impact how fairly your estate is distributed among family members if your overall estate plan does not account for those transfers.

That is one reason gifting authority should be considered together with your broader estate planning goals.

If you're evaluating your overall plan, Does Everyone Need a Will in Ohio? explains why coordinating all of your estate planning documents is so important.

Choosing the Right Agent Is Essential

Because gifting authority involves the ability to transfer valuable assets, selecting the right agent becomes even more important. Your agent should understand your values, respect your wishes, and recognize that every financial decision should be made for your benefit.

An honest and trustworthy agent is often the best safeguard against future disputes or misunderstandings.

If you're still deciding who should serve, Who Should Be Your Power of Attorney in Ohio? discusses the qualities that make someone well suited for this responsibility.

Thoughtful Drafting Helps Prevent Future Disputes

Generic forms often fail to address gifting authority clearly.

A carefully drafted financial power of attorney can specify whether gifts are permitted, under what circumstances they may be made, and whether any limitations should apply. Providing clear instructions while you are able to do so helps reduce confusion for your agent and your family if the document is ever needed.

Practical Checklist

Before giving your agent authority to make gifts, consider:

Whether gifting authority is necessary.
Whether the document clearly explains your wishes.
Whether gifts could affect your estate plan.
Whether your chosen agent is someone you trust completely.
Whether your estate planning documents work together.

Discussing these issues before signing your power of attorney can help avoid misunderstandings later.

Takeaway

A financial power of attorney does not automatically authorize your agent to make gifts on your behalf.

Whether gifting is permitted depends on the language of your document and should be considered carefully because it can affect both your finances and your estate plan. A thoughtfully drafted power of attorney helps ensure your agent has the authority you intend, while protecting your long-term goals.

If you're wondering whether your agent can also change who receives your assets after your death, Can My Power of Attorney Change My Beneficiaries in Ohio? explains another important limitation on an agent's authority.