The Responsibilities of a Power of Attorney
A power of attorney is a legal document that allows an individual, known as the principal, to appoint another person, referred to as the agent or attorney-in-fact, to act on their behalf in various financial and legal matters. This arrangement grants the agent the authority to make decisions and take actions in the best interest of the principal. However, being appointed as a power of attorney comes with significant responsibilities. In this blog post, we will discuss the crucial duties that a power of attorney must fulfill.
First and foremost, the agent must act in a fiduciary capacity. This means that they have a legal obligation to act honestly, loyally, and in good faith, putting the best interests of the principal above their own. They must exercise their authority diligently, making prudent decisions and managing the principal’s affairs responsibly. This responsibility requires the agent to keep accurate records of all transactions, such as income, bills, and expenses, and to provide regular reports to the principal to ensure transparency.
One of the primary responsibilities of a power of attorney is to manage the principal’s finances. This includes paying bills, managing bank accounts, and making investment decisions on their behalf. The agent must handle the principal’s assets responsibly, ensuring that they are properly protected and managed. This requires a thorough understanding of financial matters and a commitment to acting in the principal’s best interest.
In addition to financial matters, a power of attorney may also be responsible for making healthcare decisions on behalf of the principal. This can include choosing healthcare providers, giving consent for medical treatments, and making end-of-life decisions if the principal becomes incapacitated. The agent must be familiar with the principal’s health wishes and preferences, and must make decisions that align with these desires. It is important for the agent to communicate with the principal and their healthcare providers regularly to ensure that the best possible care is being provided.
Another crucial responsibility of a power of attorney is to keep the principal’s personal information confidential and secure. This includes sensitive information such as social security numbers, financial records, and medical history. The agent must take appropriate measures to protect this information from unauthorized access or disclosure. This responsibility extends even after the principal’s death, and the agent must continue to maintain the confidentiality of the principal’s information.
Communication is key when fulfilling the duties of a power of attorney. The agent must keep the principal informed about any decisions or actions taken on their behalf. Regular updates and reports should be provided to the principal to ensure that they are aware of the state of their affairs. Open and honest communication is essential to building trust and maintaining a productive relationship between the principal and the agent.
It is important to note that being a power of attorney is not an unlimited authority. The agent must act within the scope of their powers and adhere to any specific instructions outlined in the power of attorney document. If the principal’s wishes are not clearly stated, the agent should act in their best interest, considering factors such as their past behaviors, values, and beliefs.
In conclusion, being appointed as a power of attorney is a significant responsibility that requires a high level of trust and integrity. The agent must act in a fiduciary capacity, manage the principal’s finances and healthcare decisions, maintain confidentiality, and communicate effectively. Fulfilling these responsibilities ensures that the agent is acting in the principal’s best interest and upholding the principles of the power of attorney arrangement.
