First and foremost, a financial power of attorney is a legal document that grants another person ("the agent") the authority to make decisions about the principal's property and financial matters. This empowers the agent to act on behalf of the principal, usually when the principal is incapacitated and / or incompetent, and unable to manage their own financial affairs. A financial power of attorney does not authorize the agent to make health care decisions on behalf of the principal.
Duties to adhere to when you are designated power of attorney:
Act in accordance with the principal's reasonable expectations regarding their property, or, if those expectations are unclear, act in the principal's best interest;
Conduct yourself with good faith;
Do not exceed the authority granted by the power of attorney;
As designated power of attorney, you should also:
Act in a loyal manner for the principal’s benefit;
Avoid conflicts that could hinder your ability to act in the principal’s best interest;
Act with care, competence, and diligence;
Maintain a record of all receipts, disbursements, and transactions conducted on behalf of the principal;
Collaborate with anyone authorized to make health care decisions for the principal to fulfill their reasonable expectations, or, if those expectations are unclear, to act in the principal's best interest; and
Make efforts to preserve the principal’s estate plan, provided you are aware of it and it aligns with the principal’s best interest.
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