what are the responsibilities of a financial power of attorney

Normally, the person entrusted with financial power of attorney can deal with:

• Paying rent and other bills
• Paying your taxes
• Buying insurance for you
• Paying medical bills
• Accessing your banking accounts
• Buying and selling assets at your request
• Running your small business
• Working with your accountant

Full Answer

What are the responsibilities of a financial power of attorney?

May 24, 2021 · Serving as a financial power of attorney (agent) is a serious responsibility. It is important to keep great records, and to make sure each transaction you make on behalf of the principal is in line with the fiduciary duty you have been granted. Naming an agent before times of crisis is very important.

What are the obligations of a power of attorney?

Responsibilities of a Financial Power of Attorney. The concept of a Power of Attorney (POA) sounds simple, but there is a lot to know about this important part of an estate plan, says the Rushville Republican in “Financial power of attorney responsibilities.”. Whether you are named as someone’s power of attorney or you are considering who to name on your behalf, it is …

What are general powers of attorney?

A Financial Power of Attorney is a component of your Estate Plan that ensures financial matters in your estate and are handled appropriately and responsibly. Knowing that your financial responsibilities, investments, retirement, bills and everything else in your financial world is in good hands can be a great source of comfort.

Can a power of attorney take money?

It’s ultimately up to you. Working with a Power of Attorney lawyer can help you determine exactly how to frame your document, and what level of power you need to assign to your named representative. There are a few examples of the responsibilities you can assign to your agent. Some of the most common ones include: Using your financial assets to pay for your family’s …

What three decisions Cannot be made by a legal power of attorney?

You cannot give an attorney the power to: act in a way or make a decision that you cannot normally do yourself – for example, anything outside the law. consent to a deprivation of liberty being imposed on you, without a court order.

Can a power of attorney transfer money to themselves?

Attorneys can even make payments to themselves. However, as with all other payments they must be in the best interests of the donor. ... Gifts can be on occasions such as births, marriages, birthdays, or anniversaries etc., and only to those people who are closely connected with the donor.

What are the disadvantages of power of attorney?

DisadvantagesYour loved one's competence at the time of writing the power of attorney might be questioned later.Some financial institutions require that the document be written on special forms.Some institutions may refuse to recognize a document after six months to one year.More items...

Can I sell my mother's house with power of attorney?

Answer: Those appointed under a Lasting Power of Attorney (LPA) can sell property on behalf the person who appointed them, provided there are no restrictions set out in the LPA. You can sell your mother's house as you and your sister were both appointed to act jointly and severally.Apr 2, 2014

What is a Financial Power of Attorney?

A Financial Power of Attorney is the part of your Estate Plan that allows you to grant authority to someone you trust to handle your financial matters. Your Financial POA (also known as an Attorney-in-Fact) can step in when and if you’re ever unable to make financial decisions on your own due to incapacitation, death or absence.

What is a Durable Financial Power of Attorney?

A Durable Financial Power of Attorney is just the term used that denotes someone can act even after you become incapacitated and can’t express your will or make decisions. It’s not uncommon to wonder what powers does a Durable Power of Attorney have - and we’ll cover that in a bit.

How to Choose a Financial Power of Attorney

Choosing your Financial POA can be a bit daunting, but you want to take the time to make sure you’re confident with your decision and that you trust the person you name. In the long run, it will be well worth the time you’ll spend deciding.

Why do I Need a Financial Power of Attorney?

A Financial Power of Attorney is a component of your Estate Plan that ensures financial matters in your estate and are handled appropriately and responsibly. Knowing that your financial responsibilities, investments, retirement, bills and everything else in your financial world is in good hands can be a great source of comfort.

What a Financial Power of Attorney Can Do

A financial power of attorney is a document that in regards to your financial matters can give as little or as much responsibility as you wish to your designee.

Is a Financial Power of Attorney All or Nothing?

The wonderful thing about a financial power of attorney is that it includes only what you want it to.

What If My Financial Situation Changes?

There is what is referred to as a springing power of attorney. With this type of financial power of attorney, you can give your designee the ability to make decisions only when you are incapacitated, or at some other time or event to occur in the future.

Let Us Help With your Financial Power of Attorney

If you have questions about setting up a power of attorney of any type, the experienced staff at Atlanta Wills + Trusts Law Group by Refeca Law LLC are here to help answer them.

What is a financial power of attorney?

A financial power of attorney is a document allowing someone (the “attorney-in-fact” or “agent”) to act on the principal’s behalf. It normally allows the attorney-in-fact to pay the principal’s bills, access his accounts, pay his taxes, buy and sell investments or even real estate. Essentially, the attorney-in-fact steps into the shoes ...

Who is responsible for paying taxes on a principal's estate?

Many powers of attorney grant the agent authority to pay the principal’s taxes. If this is the case, you will be responsible for filing and paying taxes during the principal’s lifetime. If the principal passes away, however, the executor of the principal’s will is responsible for preparing any final taxes.

What to do if you don't have a trust?

If the person you are caring for does not have a trust, you should consider setting one up for them (assuming the power of attorney grants you that authority). This is especially important if the principal is gravely ill. Speak with a qualified attorney for help.

Who is Jeffrey Gaffney?

Jeffrey Gaffney is a 25-year attorney and retired Navy captain. A graduate of the University of San Diego School of Law, he began his practice helping aggrieved investors recover from unscrupulous stockbrokers. He is an arbitrator for the New York Stock Exchange, the Pacific Stock Exchange and FINRA. Gaffney also serves as a legal fellow with FreeWill, a digital estate planning platform. After years of securities work, he changed his emphasis to trusts and estates as a way to further protect people and their futures.

What to do if you don't know the principal?

If you don’t know the principal’s expectations, then always act with their best interests in mind.

What are the duties of a power of attorney?

What Are the Duties of Power of Attorney? What Are the Duties of Power of Attorney? A power of attorney is a legally enforceable document that grants one person, the agent, the ability to act on behalf of another person, the principal, in specific matters ranging from health care to the management of personal property and finances.

What powers does a principal have?

A principal may execute a limited power of attorney for a specific purpose, such as for the purchase or sale of property or handling a certain bank account. A principal can also grant an agent powers to make health care decisions on the principal's behalf.

What are the duties of an agent?

Through one or more powers of attorney, the principal can authorize an agent to manage numerous tasks, including entering into contracts, dealing with real and personal property, handling the principal's financial and tax affairs, and arranging for the principal's housing and health care. The agent's primary duty is ...

What are fiduciary duties?

If an attorney-in-fact breaches any of these fiduciary duties, he or she can be personally liable for any monetary damages that result and, depending on the circumstances, could face criminal charges for fraud. Some examples of a breach of fiduciary duty include: 1 Refinancing the mortgage on the principal's house but failing to shop around to get a competitive interest rate (a court may require the attorney-in-fact to pay the extra interest expense incurred by the principal). 2 Engaging the attorney-in-fact's brother to be the principal's investment advisor and agreeing to pay inflated management fees for the brother's services (a court may require the attorney-in-fact to repay excessive fees) 3 Opening credit cards in the principal's name and using them to charge personal expenses (a court may require the attorney-in-fact to repay all principal and interest owed on the accounts) 4 Violating an explicit prohibition in the power of attorney against changing the beneficiary of the principal's life insurance policies by making the attorney-in-fact a policy beneficiary (a court would require the attorney-in-fact to repay any amount received under the policy)

Can an attorney in fact be personally liable for a principal's debt?

Keep in mind that a person acting as an attorney-in-fact can be personally liable for a principal's debts if the attorney-in-fact has agreed to create that obligation in another legal capacity. For example, a son or daughter who is an attorney-in-fact for an elderly parent might agree to be a coborrower or cosigner with ...

What does an attorney in fact do?

Attorneys-in-fact act in their capacity under a power of attorney only as agents or representatives of the principal. They do not act for their own benefit under a power of attorney or make decisions that involve their own assets and finances.