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Power of Attorney
Does person (agent) holding 'power of attorney' assume any liablity or responsibility for outstanding liabilities of the 'ma...

Does person (agent) holding 'power of attorney' assume any liablity or responsibility for outstanding liabilities of the 'ma...

Q: Are you responsible for your parents' debt if you have power of attorney?

No, having power of attorney for a parent does not make you responsible for their debts. The debts remain the obligation of the parent (principal). The agent's role is to manage the parent's affairs, but they do not assume personal liability for the parent's financial obligations.

Q: What is a POA not allowed to do?

A power of attorney is generally not allowed to make decisions that are against the principal's best interests, change the principal's will, or make gifts of the principal's assets without explicit permission. Additionally, the agent cannot use the principal's funds for their own benefit.

Q: What three decisions cannot be made by a legal power of attorney?

A legal power of attorney cannot make decisions regarding the principal's will, consent to marriage or divorce, or make healthcare decisions if the principal has previously specified otherwise in a living will or advance directive. These limitations ensure that the principal's wishes are respected.

Q: Does power of attorney assume financial responsibility?

No, a power of attorney does not assume financial responsibility for the principal's debts. The agent acts on behalf of the principal, managing their financial affairs, but any debts or liabilities incurred by the principal remain their responsibility, not the agent's.

Full question:

Does person (agent) holding 'power of attorney' assume any liablity or responsibility for outstanding liabilities of the 'maker/principal' after all assets and real estate of principal real estate are properly disposed of/sold by the 'agent'?

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

Answer:

We cannot give legal advice. The following is not a substitute for the advice of a local attorney. But we hope the information will be useful.

Basically the answer to your question is no. The agent/attorney assumes no responsibility for the liabilities of the principal. The agent/attorney acts with the authority of, and on behalf of, the principal. It is as if the principal were doing the acts himself, and any liability that results - or that remains, as you are suggesting - is the responsibility of the principal, not of the agent.

There is good reading on agent/principal liability here:

http://www.google.com/search?q=principal+and+agent+liability

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

What responsibility comes with power of attorney?

When someone holds power of attorney (POA), they are responsible for making decisions on behalf of the principal in financial, legal, or medical matters. This includes managing assets, paying bills, and making healthcare decisions. However, the agent does not take on the principal's debts or liabilities; those remain the principal's responsibility.

What are the disadvantages of being a power of attorney?

Being a power of attorney can come with significant responsibilities, including the potential for personal liability if the agent acts improperly. Additionally, the agent may face emotional stress from making difficult decisions and must maintain accurate records of all transactions. Mismanagement can lead to legal disputes or accusations of misconduct.