What Responsibility Comes with Power of Attorney?
Power of attorney (POA) is more than just a document—it’s a responsibility that can profoundly impact another person’s life. When someone grants a POA, they entrust their financial, medical, or legal decisions to another individual. This authority can be invaluable in times of illness, incapacity, or absence, but it also carries weighty obligations.
In this article, we’ll break down what power of attorney involves, the different types, the responsibilities it brings, and how to approach this role with care.
What Is a Power of Attorney?
A power of attorney is a legal document that authorizes one person—the agent or “attorney-in-fact”—to act on behalf of another—the principal. The scope of authority can vary, ranging from broad financial powers to particular tasks, such as handling a single real estate transaction.
Because POA documents must comply with state law and accurately reflect the principal’s wishes, consulting an experienced estate planning attorney is the best way to ensure the arrangement is clear, enforceable, and aligned with the principal's long-term goals.
Types of Power of Attorney
Different POAs come with different responsibilities:
Financial POA – Allows the agent to manage money, pay bills, file taxes, and oversee investments. Careful record-keeping and honesty are essential.
Healthcare POA (Medical POA) – Authorizes the agent to make medical decisions if the principal cannot. This requires respecting the principal’s values and wishes.
Durable vs. Non-Durable POA – A durable POA continues if the principal becomes incapacitated, while a non-durable POA ends at that point. Durable POAs require ongoing stewardship.
Springing POA – Becomes effective only when a specified condition, such as incapacity, is met. The agent must be ready to act when that condition occurs.
If you are unsure which type fits your needs, our legal services page outlines options to help you plan wisely.
Core Responsibilities of a Power of Attorney
Taking on a POA is a commitment to act with integrity and care. Key duties include:
Fiduciary duty – Acting solely in the principal’s best interests.
Loyalty and honesty – Avoiding conflicts of interest and self-dealing.
Diligence and prudence – Managing affairs responsibly, from paying bills to protecting assets.
Communication – Keeping the principal (if possible) and family informed of significant decisions.
Confidentiality – Protecting private financial and medical information.
Legal compliance – Staying within the authority granted by the POA and following state law.
What This Looks Like in Daily Life
Managing finances: Overseeing accounts, paying expenses, and filing taxes.
Making healthcare decisions: Choosing treatments aligned with the principal’s preferences.
Protecting assets: Safeguarding property and planning for long-term care.
Navigating incapacity: Acting promptly to address urgent matters when the principal is unable.
Avoiding Pitfalls
Unfortunately, POAs can be misused if not handled carefully. Common risks include:
Misuse of funds – Avoided through meticulous records and audits.
Acting beyond authority – Prevented by regularly reviewing the POA document.
Emotional strain – Recognize the stress of decision-making and seek support when needed.
Family disputes – Minimized by clear communication and legal guidance when conflicts arise.
Final Thoughts
Accepting power of attorney is an act of trust that comes with serious responsibility. It requires ethical judgment, transparency, and a willingness to put the principal’s best interests above all else.
If you’ve been asked to serve—or are considering granting someone POA—take time to review the document, clarify expectations, and seek professional guidance. Our team at Watson Law Firm can help ensure that your documents accurately reflect your wishes, providing peace of mind for you and your loved ones.
When handled with care, a power of attorney can provide stability, independence, and security during life’s most challenging moments.
