Am I liable for someone’s debts if I sign a power-of-attorney for them?
Tuesday, April 14th, 2009 at
4:46 am
jefemhub asked:
My sister is going to a mental institution for a while and wants me to sign a power of attorney before she goes so I can handle her affairs. She is in debt to the IRS, credit card companies and facing foreclosure. What will I be liable for?
My sister is going to a mental institution for a while and wants me to sign a power of attorney before she goes so I can handle her affairs. She is in debt to the IRS, credit card companies and facing foreclosure. What will I be liable for?
Tagged with: Credit Card Companies • Debts • Power Attorney • Power Of Attorney
Filed under: Lawyer FAQ
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Personally, you should not be held liable for any past debts. Any debts that are incurred once you have power of attorney theoretically could reflect back on you depending on how the debt is structured.
A power of attorney simply means that you have the power to act as if you were that person, you do not gain possession of any assets or debts.
(Note, I’ve seen folks try to use a POA to move assets out of the original persons name in situations like this. I’m not saying you are thinking of it, but do not try it. If you did, you COULD find yourself on the hook)
No. The only debts you would be liable for are the one’s you incurred on her behalf as power of attorney. Be careful of what you sign as her DPOA.
No, but you may be responsible for speaking for those debts, but don’t worry you will never be liable to pay them.
1. YOU don’t sign a POA to handle HER affairs. SHE signs a POA allowing you to handle her affairs.
2. A POA does NOT make you liable for any of her debts. If MAY make you responsible to use HER assets to pay the debts.
3. If you MISUSE your authority under the POA, you are liable for the misuse.