I have agreed to act as an agent for a power of attorney. What risks am I exposing myself to?
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Being appointed by a principal to act as a power of attorney indicates that you are trustworthy. However, there are risks in agreeing to be a power of attorney. You will be personally liable for the financial choices and decisions. Also, you may unintentionally embezzle or mismanage property or funds, especially if the terms of the power of attorney are broad. Thus, ensure you clearly understand the terms, limitations, and rules of the agreement before signing up to be a POA. Remember, cases of mismanaging and fraudulent activities on estates can put you on the wrong side of the law. Therefore, legal and financial liabilities are key risks of being an agent for a power of attorney.