with power of attorney who is responsible for the bills

Though powers of attorney give a person the ability to access the finances of the principal (the party who signs over the power of attorney; in this case, the nursing home resident) and pay the principal’s bills, they don’t directly impose a financial responsibility on the power of attorney holder themselves.

Full Answer

Is there a liability to being a power of attorney?

Jan 22, 2021 · Is a person with power of attorney responsible for debt? ... like paying bills or selling property. Since a power of attorney agent has the potential to abuse their power, it’s important to take ...

What are the responsibilities of the power of attorney?

A person appointed as an agent, be it for a medical or financial power of attorney, is not responsible for medical bills. The source of funds for medical bills can be the principal’s: Health insurance provider. Family member, like a spouse, parent, or guardian. Public benefits program, like Medicaid. The agent appointed in a financial power of attorney must manage the …

Who should get a power of attorney?

Feb 15, 2021 · The power of attorney holder—also called the attorney-in-fact or agent—might have the ability or even the duty to pay the financial obligations of the principal. However, the attorney-in-fact isn’t required to do so out of their pocket. Instead, the attorney-in-fact would use the principal’s finances—not their own—to pay any bills, including those related to nursing …

Who needs a financial power of attorney?

May 07, 2021 · General Power of Attorney. The agent is given overall authority over the principal's finances and manages the principal’s estate and property as per the POA contract. In some cases, the agent can also access the principal's bank accounts and pay for bills and other expenses on the principal's behalf. They can also collect debts and even make investment …

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.

Can you be responsible for someone else's debt?

The short and simple answer is that no, you cannot be held responsible for another person's debts. ... Debt collectors, however, sometimes will try to deceive one person into believing that they are, in fact, responsible for paying another person's debt even though that party did not sign the underlying contract.Sep 2, 2013

Can I be forced to pay someone elses debt?

You cannot be asked to pay for a debt that you are not linked to or liable for in any way, a court cannot order you to take liability for someone else's debt. However, there are some ways in which someone else's inability to pay their debt can impact you and the household.

How do I take over someone's debt?

You can take responsibility for someone else's debt in a variety of ways, depending on the type of debt involved. In most cases, it's as simple as contacting the creditor, giving your personal information, and agreeing to become a guarantor for the debt.

How does a power of attorney work?

A power of attorney is a legal document giving authority to an agent to act on behalf of the principal in the event of incapacitation. Generally, this is the person who is responsible for making decisions for you when you can't. A principal is a person who designates power of attorney, ...

What is the purpose of a power of attorney?

As you probably know, the primary purpose of a power of attorney is to act as another person's legal agent during their lifetime should they need you. But what happens when they pass away? You may be wondering if you will be responsible for any debts after the principal's death. Let's take a closer look.

Which states have community property laws?

The nine states with community property laws include California, Arizona, Louisiana, Nevada, Idaho, New Mexico, Washington, Texas, and Wisconsin. Make the right defense the right way with SoloSuit.

Who is the executor of an estate?

The executor of the estate is usually named by the will and is bound by its provisions. Essentially, while a power of attorney represents a principal while they are alive, the executor represents the principal after death. Once appointed, the executor can only follow the instructions laid out by the will. If the deceased principal did not leave ...

What is a POA?

A power of attorney (POA) gives a person or agent authority to manage the principal's affairs, including finances, property, or medical-related decisions. There are three different types of power of attorney. General Power of Attorney.

What is the role of an agent in a POA?

The agent is given overall authority over the principal's finances and manages the principal’s estate and property as per the POA contract. In some cases, the agent can also access the principal's bank accounts and pay for bills and other expenses on the principal's behalf.

What happens to the principal when he dies?

In the event of death, all the outstanding debts liable to the principal should be settled using the property in their estate left after death. The family members of the principal are not responsible for any debts owed by their deceased relative.

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.

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 ...

Who is Deb Hallisey?

Deb Hallisey is a caregiver knowledge expert. She earned this title helping her dad through his congestive heart failure and death. She continues to earn it as caregiver for her disabled mother. Deb brings a unique perspective to this educational blog. She has over twenty-five years’ experience as a consultant with Ernst & Young and Huron Consulting Group along with smaller boutique firms building and enhancing corporate training programs. Deb is an educator with a passion for helping others advocate for older adults and their families. Read more about Deb.

What is limited form?

Limited – allows you to choose someone to act as agent and handle a specific monetary matter on their behalf. The form becomes void upon completion of the act or at a stated expiration date. General – allows you to choose anyone to be your agent to handle financial affairs.

Can a hospital witness a power of attorney?

However, hospitals often allow their staff to witness a Healthcare Power of Attorney document.

What is a Durable Power of Attorney?

A Medical Durable Power of Attorney gives one (called the attorney-in-fact) the authority to make medical decisions for the grantor if s/he is unable to make such decisions for himself/herself. Usually, it can also grant the attorney-in-fact the ability to access the grantor's accounts and assets to pay any medical bills and fees. If you were not granted that ability in the Durable Power of Attorney, you will need to either work with the designated financial attorney-in-fact, or an attorney to be able to pay his medical expenses.

Can a power of attorney pay bills?

A definitive and short answer is no. as power of attorney you are responsible for his bills with his funds unless you caused the bills.

Do you have to read the fine print before signing?

Be sure to read all fine print before signing. It is possible that when you sign a form you may be agree ing to be responsible to pay. It is very important to read and understand what you are signing. If in doubt have an attorney review it before signing. * This will flag comments for moderators to take action.

Legal Capacity of An Attorney-In-Fact

• Attorneys-in-fact act in their capacity under a power of attorneyonly 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. For example, if the attorney-in-fact for an elderly principal suffering from dementia makes monthly mortgage payments for the principal's house f…

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Breach of Fiduciary Duty

Borrower, Cosigner, and Guarantor