Power of Attorney Responsibilities: What You Need to Know Before Accepting the Role
- Jeff Schlotterbeck, CFP®
- May 27
- 2 min read
Being named as someone’s Power of Attorney (POA) is more than a legal formality—it’s a crucial responsibility that plays a key role in their estate plan.
If you’ve been granted POA, here’s what you need to know about your authority, your duties, and where the boundaries are.
What Is a Power of Attorney?
A Power of Attorney is a legal document that allows one person (the “agent” or “attorney-in-fact”) to act on behalf of another (the “principal”).
The document outlines how broad or limited this authority is. There are two common types:
Immediate POA – Becomes effective as soon as it’s signed.
Springing POA – Only becomes effective if the principal becomes incapacitated. (This version is less common, since proving incapacity can be complicated.)
It’s essential to read and understand the specific terms of the POA document, as every case is different.
Understanding Power of Attorney Responsibilities
If you’re named as a POA, your authority may include tasks like:
Managing Finances – Overseeing bills, investments, and overall money management.
Accessing Bank Accounts – Managing deposits, withdrawals, and day-to-day banking.
Handling Insurance Matters – Making decisions about health, life, and other coverage.
Maintaining Estate Documents – Keeping track of legal documents and records.
Filing Tax Returns – Managing the principal’s tax obligations.
Accessing Safe Deposit Boxes – Retrieving or securing important items.
Real Estate Transactions – Signing documents for buying or selling property.
Keeping Detailed Records – Documenting all transactions and reimbursable expenses.
What a POA Cannot Do
Even with broad authority, there are legal limits to what a POA can do:
Write, change, or cancel a will or trust
Vote in public elections
Act outside the scope of the POA document
Transfer assets to themselves (unless explicitly allowed)
Borrow or lend money on the principal’s behalf without permission
What Is a Durable POA?
A Durable Power of Attorney stays in effect even if the principal becomes incapacitated—whether mentally or physically. Without the “durable” language, the authority would end if the principal can no longer make decisions.
This durability makes it a critical tool in comprehensive estate planning.
Important Note
While I regularly help clients coordinate and understand the financial implications of their estate planning documents, I am not an attorney and do not provide legal advice. If you need legal help preparing or reviewing a Power of Attorney, I’d be happy to introduce you to a trusted estate planning attorney in my network.
Final Thoughts
Serving as a POA can be both meaningful and complex. If you’ve been named in this role, be sure to:
Review the document carefully
Understand your responsibilities
Respect the limits of your authority
And most importantly, don’t hesitate to ask questions if something is unclear.
Need Help Reviewing Your POA or Estate Plan?
If you’ve been named Power of Attorney—or you’re planning your own estate and want to name the right person—I can help guide you through the financial side and connect you with a qualified attorney if needed.
Schedule a call today to take the next step in protecting your future and understanding your responsibilities.
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