Full question:
I am Power of attorney for my parents and I am a signer on their personal checking accounts. What is my liability for their unsecured debt?
- Category: Power of Attorney
- Date:
- State: Texas
Answer:
A power of attorney (POA) allows one person, called the agent or attorney-in-fact, to act on behalf of another, known as the principal. In this role, you must act in your parents' best interest and follow their directions. Generally, as an agent, you are not liable for your parents' debts unless you acted in bad faith or incurred the debts jointly with them.
As a fiduciary, you must keep your finances separate from theirs, maintain detailed records of transactions, and not profit from your role unless explicitly allowed by the POA. After your parents pass away, their estate executor will manage any outstanding debts.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.