Q: What are the fiduciary responsibilities to consider when executing business under a POA?
April 24, 2009

A: A power of attorney ("POA") is a contractual relationship whereby an agent is granted authorization to act on behalf of the principal. The POA must always be exercised in the best interest of the principal and to avoid any conflict of interest between the agent and principal. This strict duty to avoid the conflicts of interest is where many of the problems arise. It is often tempting for an agent (son or daughter) to exercise the POA for his or her self-interest, rationalizing that there is no real conflict and it is for the benefit the principal. For example, by exercise of the POA, the agent could reduce grandmother's estate by paying for grandchildren's tuition. Conflict? Before exercising a POA that would have any benefit, direct or indirect, to you, you should consult someone who has knowledge of the issues and law in this area.

If you have questions, please contact:
Charles B. Jones, Esquire

CJones@TandLLaw.com
(410) 752-2468