Is a Power of Attorney Liable for Debts?
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Usually a power of attorney is not responsible for the principal's debt. Only if the debts are caused by the power of attorney's grossly irresponsible acts can the power of attorney be held liable, according to Nolo.
Following Instructions
Generally, if the power of attorney follows instructions given by the principal, there is little legal risk involved, according to Nolo. Only when the power of attorney strays from the principal's instructions and wishes does he have a risk of liability.
Death of Principal
Upon death of the principal, the power of attorney is relieved of all duties to the principal's instructions and of all legal liabilities. This includes the principal's debt, according to Nolo.
Joint Responsibility
Power of attorney is not responsible for the principal's debts, unless she previously shared joint responsibility for debts. In this case, the power of attorney will more than likely have to pay the debts, according to Nolo.
- Usually a power of attorney is not responsible for the principal's debt.
- Only if the debts are caused by the power of attorney's grossly irresponsible acts can the power of attorney be held liable, according to Nolo.
References
Writer Bio
Le Bach Pham has been writing professionally since 2002 and currently writes articles for various websites. He served as an editor for "The Mesa Press" and graduated from the University of California, San Diego with a Bachelor of Arts in English literature.