What is a Power of Attorney?
Unfortunately, there are times when a person becomes unable to take care of their financial affairs (paying bills and controlling investments, for example). The power of attorney gives the legal authority to do these things to a trusted individual, so financial decisions can be made efficiently. By consulting with an estate lawyer about a power of attorney, there are many thorny concerns that can be addressed and controlled, and potential problems averted.
A power of attorney or POA is an important legal document that designates an individual that is called an agent to perform acts on behalf of the person creating the power of attorney, call the principal. Once a POA becomes effective, the agent acts on behalf of the principal for matters concerning the principal. Powers of attorney can be used to designate a specific person to handle a specific task, such as the sale of stock or property, or for more general matters.
What Are My Duties as an Agent?
Being an agent is not an easy job and not a task to be undertaken lightly There are many responsibilities that come with this role, legally and otherwise. An agent becomes a fiduciary for the principal – this means that they owe the principal the highest duty of care and should handle the principal’s affairs at least as carefully as their own matters, or more carefully.
In general an agent must act in the principal’s best interests and act in good faith (“the punctilio of honor”), separate agent funds from the principal’s funds, act only within the limits of the POA, act so as to preserve assets, keep detailed records, and don’t act in any way to create a conflict of interest.
Appointing a power of attorney and being an agent are important decisions, it is important to discuss the options with counsel. Sometimes agents need careful guidance and assistance when faced with challenges that arise while exercising their duties. It’s always best in those circumstances to contact an experienced lawyer.
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