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Power of Attorney
Is an agent appointed as power of attorney responsibile for debts obtained by principal?

Is an agent appointed as power of attorney responsibile for debts obtained by principal?

Q: Does a POA make me responsible for debts?

A power of attorney (POA) does not make the agent personally responsible for the principal's debts. The agent can manage the principal's financial affairs but is not liable for debts incurred by the principal unless they have agreed to be responsible in a specific contract.

Q: Is an agent who has been granted a power of attorney by a principal?

Yes, an agent granted power of attorney by a principal has the legal authority to act on the principal's behalf in specified matters, such as financial or legal decisions. The extent of this authority depends on the terms outlined in the power of attorney document.

Q: Is an agent under a power of attorney a fiduciary?

Yes, an agent under a power of attorney is considered a fiduciary. This means they have a legal obligation to act in the best interests of the principal, managing their affairs with care, loyalty, and good faith.

Q: Does power of attorney make you financially responsible for someone?

No, having power of attorney does not make you financially responsible for someone else's debts. The agent can manage the principal's finances but is not liable for debts incurred by the principal unless they have explicitly taken on that responsibility.

Full question:

Is an agent appointed as power of attorney responsibile for debts obtained by principal?

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

Answer:

If the power of attorney legally authorizes a particular act, the agent cannot be held personally liable for doing that act, unless the contract specifies otherwise.

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

A legal power of attorney typically cannot make decisions about the principal's healthcare if they have not been granted that authority, change the principal's will, or make decisions regarding the principal's marriage or divorce. These limitations ensure that personal and sensitive matters remain under the principal's control.

What are the liabilities of a power of attorney?

The liabilities of a power of attorney include acting in the best interest of the principal and managing their finances responsibly. If the agent misuses their authority or acts negligently, they can be held liable for any resulting damages. However, they are generally not liable for the principal's debts unless they have personally guaranteed them.