If a friend, family member, or loved one has designated someone to take on the responsibilities outlined in their power of attorney (POA) document, it means they trust them. A power of attorney is a legal document prepared by someone – the principal – to allow someone else – the agent or attorney-in-fact – to act on their behalf on certain matters.

Most people who create a power of attorney document do so for many reasons. Some of these include prolonged absence, such as in the case of military personnel deployed overseas, busy schedules that make no room for handling one's financial affairs, or ill health. So, the agent essentially handles all financial, property, and even medical-related matters on their behalf.

Creating or executing a power of attorney document can be a delicate and confusing affair. If you need help and/or legal guidance, the Family Law Team at the LLF Law Firm can help you. Call 888-535-3686 or fill out this contact form to discuss this with an attorney.

Understanding How a Power of Attorney Document Works

There's technically no limit to the extent of the scope of instructions that a principal can leave in this advanced directives document. The only caveat is that the agent must act within the guidelines outlined by the principal to fulfill their wishes.

While the agent can execute the mandate outlined in the document, there are five things they cannot do:

• Prepare or edit the principal's will
• Access the principal's money for personal reasons
• Continue to make decisions after the principal is deceased — that role automatically transfers to an estate executor
• Transfer their power of attorney role to someone else
• Exceed the scope of authority given to the agent

Will the Agent Be Personally Responsible for the Principal's Debts?

The short answer is no. However, if the principal has the funds and the document expressly directs the agent to settle their debts from their funds, then the agent, using the power of attorney, can settle the debts on behalf of the principal.

This particularly applies when the principal has no time to or is incapable of managing their debts but is willing to repay all loans and has the financial capacity to do so.

Elements of a Power of Attorney

An effective power of attorney document has a few critical elements. These include:

• Clear directives for the agent or attorney-in-fact.
• Signing one must be done in the presence of two witnesses and a notary public.
• Clearly outline the document's duration.
• Provide instructions on when the POA can be revoked
• The principal must be of sound mind at the time of the document's creation

As the agent, it's important to stick to the purpose of the power of attorney document. This is a document that basically conveys significant trust from the principal. Doing something contrary or outside the expressed directives is considered a violation of that trust.

If you have been made an agent for someone's power of attorney or want to create one, the LLF Law Firm's Family Law Team can help you. Call 888-535-3686 or fill out this contact form to discuss it with a lawyer.