Being named in someone’s power of attorney can sound straightforward: if they ever need financial help, you step in and handle things. In reality, signing a check or accessing an account as an agent carries legal responsibilities that many family members do not fully understand until a crisis occurs. The Consumer Financial Protection Bureau classifies someone managing another person’s money under a power of attorney as a fiduciary, meaning the person’s money must be managed for their benefit rather than your own. State laws and individual POA documents also differ, so authority that exists in one situation may not exist in another. Before acting as power of attorney, these eight issues are worth understanding while there is still time to ask questions.
