Does your Power of Attorney for financial affairs document make your power of attorney responsible for your debts?
STEP 1: Your power of attorney for financial affairs is intended to appoint another person (your power of attorney, a fiduciary) to responsibly manage your finances (assets).
STEP 2: Your power of attorney document creates a duty (called a fiduciary duty) managing your money to best protect you.
STEP 3: Your power of attorney does not mean the fiduciary must use personal funds for your bills. If you need long term care, then your fiduciary may prioritize bills, if there isn’t enough money to pay all your bills. Your top priority is protecting your property, e.g., if you own a home with equity, then protect your home equity. If you have no real property or your real property has no equity, then payment to your care facility is a higher priority over debts, e.g., your mortgage, car loan or credit card debt. Also be aware if your vehicle has a loan and is returned to your lender, then you may be held responsible for any loss on the sale of the vehicle by the lender.
At all times, your power of attorney must sign as power of attorney after your name on all documents. This is done to show your power of attorney is acting on your behalf and not acting as an individual. Thus, your power of attorney does not incur personal liability for your debts.