Potential Disadvantages of Being a Power of Attorney
If you breach your duty, you could owe the principal compensation for damages. The principal could sue you if you did not act in their best interest. A POA could be held responsible if they sign an agreement that could hold them financially liable.
What are the liabilities of being a power of attorney? As an attorney-in-fact, you may be contacted by creditors of the principal for debts owed; however, you are not financially liable. Nevertheless, the creditors do have the right to attempt to collect payment from the principal.
Since your power of attorney potentially will be handling your legal and financial affairs, you'll want to choose someone who either has some experience in these fields or has the personality and financial savvy to handle the decisions that may fall to him or her. Choose someone who: Is trustworthy and fair minded.
Most people choose a family member or a close friend to be their attorney, especially for a health and welfare LPA –someone younger may be appropriate. talk to the person you want to appoint as your attorney before you make the LPA.
No, it is not required for all the siblings to agree on their sibling's or parent's choice for power of attorney. In fact, from a legal standpoint, their opinions carry no weight.
An agent can only transfer money to themselves if the POA document explicitly allows it. Self-transfers without explicit authorization are generally considered a breach of fiduciary duty and can lead to legal consequences.
If you're a cosigner, then yes, you would be responsible, but that has nothing to do with being a power of attorney. So if you're serving purely as a POA for someone, their debts are your concern (because you need to decide how they're handled), but they aren't your personal responsibility to repay.
In California, a person can appoint anyone as their agent through a POA, including a spouse, friend, or attorney. However, issues can arise when the decisions made by the POA conflict with the wishes of the spouse.
Things You Can't Do As a Power of Attorney Agent
Write a will for them, nor can you edit their current will. Take money directly from their bank accounts. Make decisions after the person you are representing dies. Give away your role as agent in the power of attorney.
Making financial and legal decisions on behalf of the principal. Hiring third-party professionals (such as lawyers and CPAs) to assist with power of attorney responsibilities. Litigating on the principal's behalf in court. Making safe investments of the principal's assets.
Key Takeaways: A Power of Attorney (POA) can sell property before death if explicitly authorized in the document, but authority ends immediately upon death.
A power of attorney gives one or more persons the power to act on your behalf as your agent. The power may be limited to a particular activity, such as closing the sale of your home, or be general in its application. The power may give temporary or permanent authority to act on your behalf.
However, power also has its disadvantages. For one, it can lead to inequality and injustice. People with too much power may abuse it or use it for their own benefit, often at the expense of others. For instance, authoritarian leaders can suppress freedom of speech or oppress minorities.
Answer: When someone creates a power of attorney (POA) and names you as the agent (sometimes also called "attorney-in-fact"), you should not be held liable for that person's debts or other financial troubles unless those difficulties result from dishonest or grossly irresponsible acts on your part.
Filial responsibility laws, also known as filial support laws, are legal statutes that require adult children to financially support their parents if they are unable to do so themselves. In California, these laws are outlined in Family Code Section 4400.
To pay yourself, keep detailed records of your tasks and time spent, document payments, and consult the POA document to confirm authorization. Seek approval from the principal (if possible) or relevant family members to maintain transparency.
Through the use of a valid Power of Attorney, an Agent can sign checks for the Principal, withdraw and deposit funds from the Principal's financial accounts, change or create beneficiary designations for financial assets, and perform many other financial transactions.
Along with wills and trust documents, it is a critical document for arranging one's affairs. A power of attorney cannot change a properly written will. However, such a person can make many changes to the assets surrounding that estate.
The California Probate Code provides for civil penalties against agents for breaching fiduciary duties to their principals. If an agent breaches a fiduciary duty, they are chargeable for: Any loss or depreciation in value of the principal's property resulting from the breach of duty, with interest.
The short answer is no. A power of attorney must be willingly granted by the principal, the person for whom the powers are being designated.
Is your eldest child your next of kin? When it comes to inheritance, all of your biological and adopted children are considered your next of kin — not just your eldest child. This means if you die intestate and your children are first in the line of succession, they'll each inherit an equal share of your estate.
Yes, two siblings can share power of attorney. Often, a parent who wants to be fair will give each child equal powers so not as to hurt anyone's feelings.