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Which State Should A Power of Attorney Be Created For?

Which State Should A Power of Attorney Be Created For?

Full question:

I am in the process of having my mom sign a durable power of attorney for financial and medical. My question is, her residence is still in California but she will be moved to Nevada soon, do I need a POA for both states or just one and if one which one? Her assets, bank accounts, property etc are all in California.

Category: Power of Attorney
Date: 04/07/2025
State: Nevada

Answer:

A power of attorney that complies with the laws of the state may appoint a person who resides outside the state as the agent (attorney-in-fact) for the principal (person making the power of attorney). A power of attorney is governed by the law of the jurisdiction where the actions of the attorney-in-fact will be performed. Usuallly, this is where the property of the principal is located. It is generally not recommended to appoint an agent who resides in a different jurisdiction, unless the property or assets involved are also in the different jurisdiction. When the agent will be acting in more than one jurisdiction, separate powers of attorney for each jurisdiction are recommended.

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.

FAQs

Is a durable power of attorney responsible for medical bills?

A durable power of attorney (POA) can be responsible for managing medical bills if it grants the agent authority to handle healthcare decisions and finances. However, the agent is not personally liable for the principal's debts, including medical bills, unless they have agreed to be responsible. The agent's role is to act in the best interest of the principal and manage their affairs as specified in the POA document.

Is a power of attorney responsible for medical bills?

A power of attorney (POA) itself is not responsible for medical bills. The agent designated in the POA can manage the principal's medical expenses, but they do not incur personal liability for those bills. The responsibility for payment lies with the principal, and the agent must act according to the principal's wishes and the authority granted in the POA.

Does California recognize out of state power of attorney?

Yes, California generally recognizes out-of-state powers of attorney, provided they comply with the laws of the state where they were created. However, if the POA involves specific actions in California, it is advisable to ensure it meets California's requirements to avoid complications. Consulting a local attorney can help clarify any specific needs.

Is POA responsible for nursing home debt?

A power of attorney (POA) is not personally responsible for nursing home debt incurred by the principal. The agent can manage the principal's finances and make payments, but they do not assume liability for the principal's debts. The principal remains responsible for their own debts unless the agent has explicitly agreed to be liable.

What are the disadvantages of a durable power of attorney?

Disadvantages of a durable power of attorney (POA) include the potential for abuse by the agent, as they have significant control over the principal's finances and decisions. Additionally, if the POA is not properly drafted or executed, it may not be recognized in certain situations. The principal must also trust the agent completely, as they may not have oversight once the POA is in effect.

Does being POA make you responsible for debts?

No, being a power of attorney (POA) does not make you personally responsible for the principal's debts. The agent's role is to manage the principal's affairs as specified in the POA document. The principal remains liable for their own debts, and the agent must act in the principal's best interest without incurring personal liability.