It may be the case that a family member has given you their power of attorney in order to manage their finances while they’re in a nursing home. If there is an outstanding balance on the account, however, this creates questions about your rights. In general, the agent under a power of attorney is not liable for debts associated with the grantor of that power of attorney.
However, there are some specific exceptions to this rule, and in those cases, a power of attorney agent should educate themselves about what to anticipate and best ways to guard against this. If a power of attorney agent used their authority to transfer assets to themselves, then they could be considered personally liable with respect to those assets. If you have further questions about the responsibilities and potential liabilities of stepping into the role of a power of attorney agent, consult with an experienced and knowledgeable estate planning lawyer.
Having clarity over your role and the intentions through which your loved one intends to carry this out can be instrumental in helping you to make a good decision going forward. There are many different things to think about when stepping into the position of power of attorney agent and it is vital to understand your level of responsibility.
The right Pasadena, CA estate planning law firm makes a big difference in your level of confidence in your estate plan. Get your documents aligned with your goals and develop a partnership with a legal team who will help you adapt those plans and documents over time as needed.
