What are the financial liabilities of an agent for a principal?

Full question:

My sister in law is an agent for my mother in law. What is she liable for financially and can she risign at any time? Who takes over if the principal is not capable?

Answer:

The attorney-in-fact is financially liable for any harm caused by actions taken in bad faith or by failing to act when they have a duty to do so. They can resign at any time by providing the principal with a notarized letter stating they are "unwilling to serve". If no successor is named in the power of attorney, a new document will need to be created.

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

You cannot directly transfer a power of attorney (POA) to another person. If the current agent wishes to appoint someone else, they must resign and the principal must create a new POA document naming the new agent. This ensures that the new agent has the authority to act on behalf of the principal.