It is
important to remember that even though mom named you, her child, as her agent
under a financial power of attorney, mom is still able to act for herself. The
power of attorney does not take away mom’s ability to take care of her own
financial matters. Mom can choose the powers that her agent will have under the
document. When you act as agent under a financial power of attorney in Virginia,
the agent has four basic responsibilities. The basic responsibilities include
the following:
1. You must act in mom’s best interest
2. You must manage mom’s money and
property with care
3. You must keep mom’s money and
property completely separate from your own
4. You must keep good records of all
transactions
The agent is
managing money or property for mom and you’re supposed to enter into all
transactions for mom’s benefit, not for your own benefit. You must also be
honest and act in good faith. You should carefully read the power of attorney
and only do what the document allows you to do. You are under a duty to follow
mom’s instructions and wishes.
Further, it is
important that you keep mom’s assets separate from your own. This means that
all of mom’s expenses should be paid from her own funds, and not from your own checking
account to be reimbursed by mom later. You should keep a detailed list of
everything that you receive or spend as agent and additionally keep all
receipts and a copy of all financial statements. If mom requests one, you must
give mom an accounting of all of the actions you have taken as agent. Acting as
agent under a financial power of attorney comes with a lot of responsibility
and the agent should know their obligations to avoid any legal problems.
Written by Heather W. Winter, Esquire
