Full question:
My brother and I share power of attorney for my mother who has dimentia and is in a nursing home. Her finances have all been depleted and her nursing care is now being paid by Medicaid. Her house is listed for sale. If the home owner's insurance is cancelled and someone is injured on the premises, can the person(s) with the power of attorney be held liable?
- Category: Power of Attorney
- Date:
- State: Pennsylvania
Answer:
The agents under a power of attorney have fiduciary duties, which require them to act in the best interest of the person they represent. These duties include a duty of loyalty and a duty of care. While they hold legal title to the assets, they do not own them; instead, they manage these assets for the principal's benefit.
If the homeowners insurance is canceled and someone is injured on the property, it could be argued in court whether the agents' failure to maintain insurance constitutes a breach of their fiduciary duty. If an injury occurs, the homeowner may face liability for damages. In this case, having insurance could be seen as necessary to protect the principal's assets, even if they are receiving Medicaid benefits.
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.