ADVERTISING: Advertorial - You've been named as someone's power of attorney. Now what?

Being asked to serve as someone's power of attorney agent is a significant act of trust. Whether you've been named to handle financial matters, medical decisions, or both, it's important to understand what that role actually means — before you ever need to step into it.

Many people accept this responsibility without fully understanding the weight it carries. Here's what you should know.

There Are Two Different Roles

A financial power of attorney authorizes you to manage someone's financial affairs — paying bills, managing bank accounts, filing taxes, handling real estate transactions, and more. The scope of your authority depends entirely on what the document says, so read it carefully before taking any actions.

A medical power of attorney (sometimes called a healthcare proxy or healthcare directive) authorizes you to make medical decisions on someone's behalf if they become unable to make those decisions themselves. This can include everything from consenting to surgery to decisions about end-of-life care. The document may place limits on your discretion, so read it and understand it before taking action.

These are separate documents, and you may be named for one, the other, or both.

When Your Authority Actually Begins

It's a common misconception that a power of attorney gives you immediate authority over someone's affairs. Most documents are "springing" powers of attorney, meaning your authority only activates under specific conditions — typically when a physician certifies that the person is incapacitated. Others, however, are effective immediately upon signing.

Know which type you're dealing with, and make sure you understand the specific triggering language in the document.

Your Duties as an Agent

Acting as a POA agent is not a free pass to do whatever you think is best. You have a fiduciary duty — a legal obligation to act in the principal's best interest, not your own. In Idaho, this means:

• Making decisions consistent with the person's known wishes and values

• Keeping their assets completely separate from your own

• Keeping detailed records of every financial transaction you make on their behalf

• Never making gifts to yourself or others unless the document explicitly permits it (and even then – you should talk to an attorney about doing so first)

Violating these duties — even unintentionally — can expose you to personal legal liability.

What to Watch Out For

Family pressure. Other family members may push you to make decisions that benefit them. Your obligation is solely to the person who named you, full stop.

Scope creep. Only act within the authority the document grants you. If you're unsure whether something falls within your authority, ask an attorney before proceeding.

Record keeping. Keep every receipt, bank statement, and decision log. If your actions are ever questioned, documentation is your best protection.

Your own limitations. If a situation arises that feels beyond your ability to handle — legally, medically, or emotionally — it's okay to seek professional help. That's not a failure; it's responsible stewardship.

Don't Wait for a Crisis to Get Familiar

If you've been named as someone's POA agent, take time now to read the document, have a candid conversation with the person about their wishes, and consult with an attorney if anything is unclear. Being prepared makes all the difference when the moment comes.

My law firm is currently offering free telephonic, electronic, or in-person consultations concerning probating estates or creating estate planning documents.

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Robert J. Green is an Elder Law, Trust, Estate, & Guardianship Attorney and the owner of Kootenai Law Group, PLLC in Coeur d’Alene. If you have questions about estate planning, probates, wills, trusts, powers of attorney, guardianships, Medicaid planning, or VA Benefit planning, contact Kootenai Law at 208-765-6555, [email protected], or visit www.KootenaiLaw.com.

This has been presented as general information and not as legal advice. Do not engage in legal decision-making without the advice of a competent attorney after discussion of your specific circumstances.