what are the duties of the power of attorney

What are your duties as power of attorney?

• Act on the person’s behalf. A person has asked you to act as an agent in their financial matters. ...
• Make a list of their assets and liabilities. In some cases, the principal made understanding your duties easy for you by...
• Protect the assets of the principal. This means making sure their home is secure. You might check...

Full Answer

What can I do with a power of attorney?

Sep 22, 2021 · According to s.19, the underlying principles and philosophies an attorney must adhere to are to: Act honestly and in good faith, Exercise the care, diligence and skill of a reasonably prudent person, Act within the authority given in the enduring power of attorney and under any enactment, and Keep ...

What is the purpose of power of attorney?

Jul 30, 2021 · What are your duties as power of attorney? Act on the person’s behalf. A person has asked you to act as an agent in their financial matters. ... Make a list of their assets and liabilities. In some cases, the principal made understanding your duties easy for you by... Protect the assets of the ...

What is the role of a power of attorney?

May 02, 2022 · A power of attorney (POA) is a legally binding document that allows you to appoint someone to manage your property, medical, or financial affairs. Although it can be uncomfortable to think about needing it, a POA is an important part of your estate plan. A POA is typically used in the event that you become unable to manage your own affairs.

What is power of attorney and how does it work?

Jan 12, 2022 · Perhaps your parent recently passed and you were named as his agent in a power of attorney (POA). You're the individual he wanted to take care of certain personal business matters for him. The POA gave you the authority to act on his behalf in a number of financial situations, such as buying or selling a property for him or maybe just paying his bills.

What is a power of attorney?

In short, a power of attorney has the authority to take legal action on behalf of another person–the principal. Let’s take a look at what that means for both of you.

What are the two types of power of attorney?

The two primary types of power of attorney are financial power of attorney and medical power of attorney . While the financial power of attorney ’s role concerns legal and financial affairs, the medical power of attorney handles health and medical decisions. For the purposes of this article, we’ll focus on financial power of attorney.

What is the job of a tax accountant?

Matters pertaining to taxes, including dealing with the IRS and revenue departments, in addition to preparing, signing, and filing tax returns

Can a power of attorney be limited?

Most power of attorney documents are drawn up in that way. It’s possible that the scope or duration of your power may be limited under the power of attorney document, but if not specified, then your authority and duration are unlimited.

What is a power of attorney?

A power of attorney is a legal document that allows a person, the agent, to act on behalf of the person who signed the power of attorney, who is also known as the principal. These documents do not grant unlimited powers to the agent.

What is the purpose of picking a power of attorney?

Picking the proper agent is an important consideration when preparing your power of attorney documents. After all, the agent will have an important responsibility to ensure that you are taken care of when you can no longer take care of yourself. Often, people will select a family member – a sibling, an adult child or a grandchild – ...

What is the role of a health care agent in a power of attorney?

An agent in a health care power of attorney document has the duty to act responsibly towards their principal’s health wishes. Even if the parties have different moral stances, the agent’s actions must align with the principal’s wishes. The health care agent also determines when to pull the plug. You can give your health care agent guidance by signing a living will.

What is a mental health power of attorney?

A mental health power of attorney allows the agent, in conjunction with mental health providers, to determine whether the principal should be admitted to a psychiatric medical facility.

What is the duty of an agent?

The most important duty of an agent is the duty to act, and to continue to act, with the best interests of the principal in mind and in accordance with the principal’s wishes. The agent may not use the principal’s bank account or other financial assets purely for his or her own gain. The agent has a fiduciary duty to act only on behalf ...

What to discuss with an estate planning attorney?

When you meet with your estate planning attorney, discuss the specific authorities, duties, and limitations that your agent will be bound to when the documents go into effect. Have a serious conversation with your future agent so they understand your wishes and the responsibilities they are agreeing to take on.

Can an agent draw from a health care power of attorney?

The agent is allowed to draw a reasonable amount of funds from the account to compensate him or herself for the time and efforts spent managing the principal’s accounts. However, the principal’s bank account is not the agent’s personal bank account. An agent in a health care power of attorney document has the duty to act responsibly ...

What is the principal of an estate?

The “principal” is the person you are caring for and on whose behalf you, the “agent,” will be working. In the person’s estate documents, there may be an explanation of the legal duties you now have. They may include the following.

What does it mean to track expenses made on behalf of the principal?

Track all expenses made on behalf of the principal. It will show that you have upheld your duties, and it may be important to receiving payment for the time you spent acting as the power of attorney.

Why is a power of attorney important?

Power of attorney is essential in the event that you're incapacitated or not physically present to make decisions on your own behalf. Learn more in our in-depth guide.

What is a power of attorney for health care?

A health care power of attorney grants your agent authority to make medical decisions for you if you are unconscious, mentally incompetent, or otherwise unable to make decisions on your own. While not the same thing as a living will, many states allow you to include your preference about being kept on life support.

What to do if your power of attorney is not able to determine mental competency?

If you think your mental capability may be questioned, have a doctor verify it in writing. If your power of attorney doesn't specify requirements for determining mental competency, your agent will still need a written doctor's confirmation of your incompetence in order to do business on your behalf. A court may even be required to decide the ...

When do POAs take effect?

Some POAs take effect immediately after they're signed, and others only kick in after you're incapacitated.

What is the best way to choose a power of attorney?

Trust is a key factor when choosing an agent for your power of attorney. Whether the agent selected is a friend, relative, organization, or attorney, you need someone who will look out for your best interests, respect your wishes, and won't abuse the powers granted to him or her. It is important for an agent to keep accurate records ...

Is a power of attorney binding?

No power of attorney document is legally binding before it's signed and executed according to the laws of your state. This means that no agent can make decisions on your behalf before the POA document goes into effect. You must also be of sound mind when you appoint an agent. You can view more about the creation of a power of attorney in the infographic below.

What powers can an agent exercise?

You can specify exactly what powers an agent may exercise by signing a special power of attorney. This is often used when one cannot handle certain affairs due to other commitments or health reasons. Selling property (personal and real), managing real estate, collecting debts, and handling business transactions are some ...

What does POA mean in a power of attorney?

The POA gave you the authority to act on his behalf in a number of financial situations, such as buying or selling a property for him or maybe just paying his bills.

Who can deal with a POA?

His estate owns it, so only the executor or the administrator of his estate can deal with it during the probate process. 1 .

Who is the executor of a deceased person's estate?

The two roles are divided by the event of the death. In some cases, however, the agent in the POA might also be named as executor or administrator of the estate.

Can you pay bills after a deceased person dies?

You might think that you should continue paying those bills and settling his accounts after his death, but you should not and you can' t—at least not unless you've also been named as the executor of his estate in his will, or the court appoints as administrator of his estate if he didn't leave a will.

Can someone take care of his affairs after his death?

Someone is still going to have to take care of his affairs after his death, but it won't necessarily be the agent appointed in a power of attorney during his lifetime.

Can you get a power of attorney after death?

You can't get a power of attorney to act for someone after he's died, and an existing power of attorney becomes invalid upon the death of the principal—the individual who gave you the right to take certain actions on his behalf. 1 . Someone is still going to have to take care of his affairs after his death, but it won't necessarily be ...

Can a deceased person be appointed as an administrator?

The court will appoint an administrator to settle the estate if the deceased didn't leave a will. You can apply to the court to be appointed as administrator, and the court is likely to agree if the deceased left no surviving spouse, or if his surviving spo use and his other children agree that you should do the job. 4 

What is a power of attorney?

A Power of Attorney is a written document by which an individual (the grantor) appoints someone (the Attorney) to act on their behalf concerning financial and/or personal care matters.

What can a professional do for a grantor?

A professional can work with you to ensure that the grantor’s investments are managed with the degree of care, skill and diligence required. They can: Assist you with customized asset allocation appropriate to the circumstances Work with you to develop a viable investment policy statement Keep accounts of all transactions

Do grantors know the duties of an attorney?

Grantors are sometimes not aware of the extensive duties involved for the Attorney. On the other hand, Attorneys can be surprised by the extent of what they must undertake . In some cases, they have accepted not anticipating that the Power would ever be activated.

What are the duties of a power of attorney in Pennsylvania?

Pennsylvania law requires that, unless the power of attorney document specifically varies these duties, you must: 1. Exercise the powers for the benefit of the Principal; 2. Keep the assets of the Principal separate from your own; 3. Exercise reasonable caution and prudence; 4.

What is the person acting on behalf of the principal called?

The person who is acting on behalf of the Principal is called the “Agent” or “Attorney in Fact ” (that’s you). As Agent you are acting as a “fiduciary.”. A fiduciary is a person who has the responsibility for managing the money and property owned by another. The term fiduciary comes from the Latin word fiducia, meaning “trust.”.

What is the job of a fiduciary in Pennsylvania?

As a fiduciary you have the highest legal responsibility to be faithful to the interests of your Principal . Your job is to act to protect and safeguard and benefit your Principal. You may not put your personal interests ahead of your duties to the Principal. Pennsylvania law requires that, unless the power of attorney document specifically varies ...

What is the purpose of this article and another one I will post in a few days?

This article, and another one I will post in a few days, are intended to help you better understand and meet those responsibilities.