Written by Benjamin Kingsley
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.
An agent appointed under a financial power of attorney has significant responsibilities and duties to act in the best interests of the principal (the person who created the power of attorney). The agent, also called an attorney-in-fact, is given the legal authority to manage the principal’s financial affairs and make financial decisions on their behalf.
The agent’s primary responsibility is to act as a fiduciary, meaning they must manage the principal’s assets and finances solely for the benefit of the principal, not for their own personal gain. This includes duties such as:
1. Managing bank accounts, investments, and other financial assets
2. Paying bills and taxes on behalf of the principal
3. Making prudent investment decisions
4. Keeping detailed records of all financial transactions
5. Avoiding conflicts of interest or self-dealing
The agent must always act within the scope of authority granted by the power of attorney document. They are legally obligated to follow the principal’s known wishes and to make decisions that are in the principal’s best interests. The agent must also keep the principal’s property and finances separate from their own personal assets.
It is important for the agent to maintain accurate records of all actions taken under the power of attorney. This includes keeping receipts, bank statements, and a log of major decisions. These records may be necessary to demonstrate that the agent has fulfilled their fiduciary duties if questions or disputes arise later.
The agent’s responsibilities end when the power of attorney is revoked by the principal, when the principal passes away, or when a court terminates the agent’s authority. Upon termination, the agent must provide a full accounting of their actions to the principal or the principal’s estate.
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.