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What is the financial responsibility of the attorney in fact under a power of attorney?
Wiki User
∙ 11y ago
An AIF is a fiduciary and is subject to state laws that govern fiduciaries. One of the boilerplate rules for fiduciaries is that they not convert the principal's assets to their own use. The attorney in fact must not waste assets. Another rule is that they keep good records so that an annual accounting can be produced that shows the principal's funds coming in and going out. Those figures should closely match. Any fee charged by the AIF should be represented in that accounting.
Serious problems can arise for the fiduciary when other family members question the conversion of the principal's assets by the AIF for their own use. They can bring a court action to compel the accounting and if the AIF cannot show a detailed accounting they will be held personally liable for any shortages. If the agent is stealing from the principal it should be brought to the principal's attention so the POA can be revoked. If the principal is not capable of supervising the agent then the situation should be brought to the attention of the authorities. You should consult with an attorney if you have evidence that an agent is stealing from their principal. They could explain your options.
Another problem could arise if the principal is receiving any government entitlements. In certain circumstances the state can demand an accounting especially when there is evidence that the state is paying expenses for the principal while their AIF is spending the principal's money for personal use.
Any attorney-in-fact who uses their power to access the principal's funds for their own personal use should be sued and reported to the local district attorney for criminal prosecution. Courts abhor an attorney-in-fact, or any fiduciary, who uses their power to steal from the principal. Self-dealing by an attorney-in-fact is against the law in every state.
An attorney-in-fact who uses their power to convert any property to their own use is committing a criminal offense. That would include such things as transferring real estate or personal property such as motor vehicles or timeshare interests to their own name
Wiki User
∙ 11y ago
Wiki User
∙ 11y agoAs long as you identify yourself as the attorney-in-fact whenever you discuss anything or sign anything, you should not be liable for the debts.
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What is the difference between power of attorney and attorney in fact?
The person given power to act under a Power of Attorney document is called the Attorney-in-fact or Agent.
How much power does durable power of attorney give?
A durable power of attorney gives the appointed agent broad authority to make financial and legal decisions on behalf of the principal, even if the principal becomes incapacitated. The extent of power given can vary depending on the specific language and provisions in the document, but generally, it allows the agent to manage financial affairs, sign documents, buy or sell property, manage investments, and make healthcare decisions if a separate healthcare power of attorney is included.
Can a Power of Attorney refinance a house?
Yes, you can assign someone else to do the refinance for you as a POA form allows you to have someone act in your place for all financial acts legal under law, you can assign a durable, general, or limited power of attorney form.
Can one assign a medical proxy or power of attorney?
No. An attorney-in-fact or agent under a Power of Attorney cannot assign their power to someone else.
Can a Power of Attorney be held liable for a principal's debts?
Under normal circumstances, no. An attorney-in-fact only acts on behalf of the principal and signs for the principal as the principal would act on their own and sign legal documents on their own. The attorney-in-fact has no personal responsibility for the debts of the principal.
Can you be included in a will if you are power of attorney?
Yes. A POA expires when the principal dies. Therefore, you will have no Power of Attorney when the testator has died. Also, an attorney-in-fact under a Power of Attorney cannot make any changes to a person's will.
Can you break a will with power of attorney?
Absolutely not.First, a Power of Attorney expires upon the death of the principal.Second, an attorney-in-fact under an active POA cannot make changes to the principal's will.Third, an executor has no power or authority until the testator has died, the will has been allowed by the probate court and the court has officially appointed the executor.Fourth, an executor cannot make changes to the will. That is against the law.Fifth, any person who is attempting to do the action described in the question should be reported to the probate court.
When does power of attorney end in Georgia?
A power of attorney terminates when: (1) the principal dies; (2) the principal becomes incapacitated, if the power of attorney is not durable; (3) the principal revokes the power of attorney; (4) the power of attorney provides that it terminates; (5) the purpose of the power of attorney is accomplished; or (6) the principal revokes the agent's authority or the agent dies, becomes incapacitated, or resigns, and the power of attorney does not provide for another agent to act under the power of attorney.
Can power of attorney cash draw my sister's bank account?
An attorney-in-fact under a Power of Attorney has complete access to the principal's assets including bank accounts.
Siblings are fighting over power of attorney.. who is first in line for the power of attorney?
A person can choose whoever they want as their attorney-in-fact. There is no legal order they must follow. It is the free choice of the principal as to who they name as attorney-in-fact under their Power of Attorney document.
How do you sign by power of attorney in Nevada?
An agent under a Power of Attorney would sign the principal's name on the signature line and underneath add, "by Simon Crowell, attorney-in-fact".
Can a wife sign a rental agreement in her husband name?
Not unless she is his attorney in fact under a power of attorney.
