When a loved one grants a power of attorney (“POA”), the legal authority to manage their affairs shifts. But this authority doesn’t come without boundaries. In California, the individual appointed as an agent under the POA (also known as an attorney-in-fact) takes on a fiduciary duty, meaning they are legally obligated to act in their principal’s best interest. When family relationships are strained or unclear, however, this role and power of attorney obligations to family members can create tension, especially if there’s suspicion of financial abuse or neglect.
“Granting power of attorney isn’t just about paperwork; it’s about entrusting someone with the legal and moral responsibility to protect what matters most,” said Ronald V. Larson, a Partner at Gokal Law Group who has been litigating complex business and commercial cases since 1995. “More importantly, in California, that trust comes with teeth,” he said.
At Gokal Law Group, we help clients understand the legal obligations tied to a POA, especially when conflicts arise within families. Here’s what California families need to know about POA duties and legal responsibilities.
What Are Power of Attorney Rights and Limitations?
While an acting agent’s specific responsibilities, rights, and limitations are determined by the terms of the POA document itself and the type of POA they have been granted, the fiduciary duty they must uphold is essentially universal.
In other words, giving POA to a family member may feel like a simple act of trust for some, but it’s important to understand that this creates a serious legal relationship under California probate law. The rights of a POA may be broad, but they are not limitless. As such, there are specific legal duties a POA must uphold.
How Much Power Does a Power of Attorney Have?
A valid POA can grant an agent the right to make decisions regarding:
- Banking and financial transactions.
- Real estate and personal property.
- Investments and retirement accounts.
- Government benefits (e.g., Social Security, Medi-Cal).
- Medical care decisions (under an “Advance Health Care Directive”).
However, the power is only as expansive as the document allows. A “limited” POA restricts the agent to specific tasks or timeframes, while a “durable” POA remains effective even if the principal becomes incapacitated.
What Are Power of Attorney Responsibilities and Liabilities?
Under California Law, a POA has many responsibilities and liabilities to be aware of, which are also known as fiduciary duties. Here is an overview of POA duties and responsibilities:
- The responsibility to act in good faith.
- The responsibility to avoid self-dealing or conflicts of interest.
- The responsibility to keep accurate records.
- The responsibility to follow the instructions in the POA document.
- The responsibility to avoid commingling personal and principal funds.
Failing to follow these POA responsibilities and duties can expose the acting agent to civil liability and even criminal penalties in severe cases of abuse or fraud.
What Are Financial Power of Attorney Rights and Limitations?
If someone has a financial POA, also known as a general POA, over a family member, it usually means they have the power to act on their behalf anytime the issue at hand is financial or legal.
This can include paying their bills, taxes, rent, and everyday expenses, and it could also include managing and growing their assets. A financial POA will usually be permitted to also hire a lawyer on their behalf to defend claims against them.
Common rights of financial POAs are the right to:
- Access the principal’s accounts and documents.
- Make financial and legal decisions on behalf of the principal.
- Hire third-party professionals to help with their POA responsibilities.
- Litigate on behalf of the principal.
- Make safe investments of the principal’s assets.
- Use the principal’s assets to benefit the principal.
- Take a reasonable fee for the time and effort spent fulfilling their responsibilities.
As we mentioned, this role also has limitations, which can include:
- Making medical decisions on behalf of the principal (unless there is a valid Advance Health Care Directive for the agent as well).
- Using the principal’s assets for personal gain.
- Making risky investments using the principal’s assets.
- Commingling the principal’s assets.
- Making decisions or transactions on behalf of the principal without keeping records of them.
- Taking an excessive fee for the time and effort spent fulfilling their responsibilities.
If an agent has acted in any way that does not align with the above-mentioned rights and limitations, it is essential to work with an attorney as soon as possible because they are likely violating their fiduciary duties.
“It’s important to pay close attention to whether or not the power of attorney is durable – this factors heavily when it comes to disputes,” said Larson. “In California, financial powers of attorney are not automatically durable, so if the principal becomes incapacitated, for example, a person only has the authority to act on the principal’s behalf if it is durable.”
Related Article: 7 Identifiable Signs of Elder Financial Abuse
What Are Medical Power of Attorney Rights and Limitations?
If you are dealing with someone who has a medical POA (also known as an advance health care directive or health care POA) over a family member, this typically means they can act on their behalf anytime the issue is medical.
Medical decisions generally fall under a separate document called an Advance Health Care Directive, and the scope of this authority can include taking the principal to doctor’s appointments or giving them medication. As such, there are distinct medical POA responsibilities and liabilities separate and apart from financial POA responsibilities and liabilities.
Common rights of a medical POA include the right to:
- Make medical decisions about the principal’s medical treatments.
- Consent to surgeries and other procedures on their behalf.
- Decide which medication they should take.
- Choose medical providers, treatment, and assisted-living facilities.
- Choose their caregiver.
- Make decisions regarding end-of-life care.
- Bring medical claims on the principal’s behalf.
Common medical POA limitations include:
- Making financial or legal decisions on the principal’s behalf.
- Consenting to electroconvulsive therapy on their behalf.
- Hospitalizing them for mental illness.
- Withholding medication, treatment, or care.
- Consenting to an abortion on their behalf.
What Three Decisions Cannot be Made by a Legal Power of Attorney?
No matter how broad the authority, a POA cannot:
- Create, alter, or revoke a will on behalf of the principal.
- Act in a manner that is not in the best interest of the principal.
- Make decisions after the principal’s death (unless they are also the named Executor of the principal’s Will or Trustee of the principal’s Trust.)
If someone who has a POA is attempting to make such decisions, it is essential to contact a lawyer and seek legal intervention.
What Are Power of Attorney Obligations to Family?
When a POA involves close family members, conflicts often arise around decision-making, transparency, and access to funds. The person granted POA authority has many responsibilities to uphold, which ultimately revolve around a legal obligation to act in the principal’s best interests, not their own, and not the interests of other family members.
Still, understanding the legal obligations and responsibilities of a POA to a family is complex. Here is what you need to know.
What Are the Duties of a Power of Attorney Where Family Is Involved?
The acting agent has several POA duties that they must uphold. Here are some of the key legal duties of a POA to be aware of:
- Keeping detailed records
- Keeping family informed, when appropriate
- Managing finances and property responsibly
- Preventing personal conflicts from affecting decision-making
- Communicating with caregivers and medical providers
- Preserving the principal’s Estate for intended heirs
- Protecting the principal’s interests
The fiduciary standard means any action that benefits the agent personally or harms the Estate may be challenged with the help of a law firm.
What Can a Power of Attorney Do?
While the specific scope of their authority depends on the document itself, an agent who has a POA designation generally can:
- Pay bills.
- Manage investments.
- Hire or fire caregivers.
- Access digital assets (if explicitly authorized).
- Make legal decisions on the principal’s behalf.
What Can a Power of Attorney Spend Money On?
A POA can only spend money on expenses that directly benefit the principal. Examples of such expenses include:
- Medical care.
- Housing costs.
- Transportation.
- Food and necessities.
- Legal fees for the principal’s benefit.
- Tax obligations.
- Managing investments.
Gifts to others, including the agent themselves, are only allowed if clearly authorized in the POA document. If an agent is spending the principal’s money on anything that does not directly benefit them, it is crucial to contact an attorney.
What Is Power of Attorney Negligence?
POA negligence occurs when an agent fails to act with reasonable care. This can include:
- Missing bill payments.
- Mismanaging investments.
- Failing to secure insurance or benefits.
- Allowing the principal to suffer preventable harm.
Negligence can lead to removal, civil liability, and restitution, and it is important to work with an attorney to hold an agent accountable when this occurs.
What Is Power of Attorney and Trustee Conflict of Interest?
A POA may also be named as Trustee of the principal’s Trust. While this is legally permissible, conflicts arise when decisions benefit the agent in one role at the expense of another. California law prohibits self-dealing and mandates full transparency.
How to Contest a Power of Attorney
When an agent is suspected of misconduct, family members can work with an attorney to file a petition to challenge the validity of a POA, detailing their reasons for contesting the POA with the probate court to initiate the process. After filing a petition, you and your attorney will compile and present evidence at a hearing.
Generally, anyone who has a personal relationship with the principal can contest the POA. It’s worth mentioning that you and your family should be prepared with alternatives for protecting the incapacitated loved one should the court revoke the document.
Related Article: What is Probate Fraud?
Can You Contest a Power of Attorney?
You can contest a POA if you believe the POA document was signed when the principal did not have the capacity to do so, or if the document was procured by undue influence, rendering it invalid. You can also petition to revoke a POA if you believe an agent violated their fiduciary duties and it would be in the principal’s best interest.
California Probate Code § 4545 allows interested parties to file a petition to:
- Revoke the POA
- Suspend the agent’s powers
- Demand an accounting of actions taken
- Seek damages for breaches of duty
Any time you are seeking to challenge a POA, it is crucial to work with a lawyer. In more severe cases, litigation may be necessary. Naturally, this probably leads to another question: Can you sue an agent under a POA?
Can a Power of Attorney Be Sued?
Yes, you can sue a person with POA authority when they are abusing their position, acting irresponsibly, or have committed fraud. This, however, depends on the substance of the POA document and the severity of the abuse.
Can a Power of Attorney Be Held Liable?
Yes, you can hold an agent under a POA liable for actions outside of the scope of the document and for abusing their authority. Holding them accountable requires the help of a lawyer. Liability could include:
- Repayment of misused funds
- Removal of authority
- Civil penalties
- Possible criminal charges in severe abuse cases
What Will Help a Person With a Power of Attorney Make Good Decisions?
To ensure an agent makes good decisions, it is important that they keep detailed records, communicate with family whenever possible, follow the POA document strictly, and seek professional advice when unsure.
However, for family members, oversight is key – it is important to oversee how they are managing your loved one’s assets, proactively communicate and request records, and ensure you are working with an attorney as soon as you feel something is off.
In some situations, simply having a lawyer by your side will be enough to keep an agent honest and prevent them from abusing their position and your loved one.
“A power of attorney is a privilege, not a blank check,” said Larson. “If someone is abusing that power, the law provides a remedy, and so do we.”
Is Someone Not Upholding Their Power of Attorney Obligations to Family Members? We Can Hold Them Accountable.
If you are experiencing POA problems and suspect abuse or negligence by someone who has been granted a POA, it’s important to act quickly. At Gokal Law Group, our team of POA lawyers understands the nuances of California probate and POA law. We help families contest improper POAs and protect the rights of vulnerable loved ones.
We are an experienced POA law firm with a reputation for navigating complex family dynamics with clarity and care. Whether you need to challenge an agent or defend your authority under a POA, we are here to advocate for you.
FAQs About Power of Attorney Obligations to Family Members
We understand you likely have more questions about POA obligations to family members, and we are more than happy to answer them for you. Here are some of the most commonly asked questions we receive from clients.
Can a Family Member Override a Power of Attorney?
Family members do not have the power to override decisions made by an agent with a POA designation, regardless of their relationship to the principal. Only the principal or a court can override a POA.
However, if family members are concerned about how the agent is acting and the harm they may be causing, they do reserve the right to work with an attorney to petition the Court.
Can a Family Member Revoke a Power of Attorney?
Only the principal can revoke a POA while competent. A family member can only attempt to revoke a POA by working with a lawyer, filing a petition with the Court, and compelling the Court to intervene if the principal is incapacitated or subject to undue influence.
Can a Spouse Override a Power of Attorney?
No, similar to other members of the family, a spouse cannot override a POA. Marriage does not grant automatic authority to override a POA. A spouse will need to consult with an attorney to petition the Court if they want to revoke a POA.
Does a Power of Attorney Override Parental Rights?
Under a POA for a child, the POA is able to act as a parent or guardian in the absence of the true parent(s) or guardian(s). However, this document does not override a parent’s parental rights or transfer custody to the agent. It also does not prevent a parent from continuing to make decisions for their child.
Can a Power of Attorney Keep Family Away?
A person with POA authority may have the right to keep family away, but this depends on the circumstances. If they believe that the family is trying to unduly influence or steal from the principal, they may be justified in keeping the principal’s family away.
However, if family members are simply trying to visit and spend quality time with the principal and have no underhanded motives, an agent is not allowed to keep family away. If you are a family member being kept away from a loved one by someone with POA authority for no justifiable reason, it is essential to work with a lawyer as soon as possible.
The reality is that such imposed isolation is often a sign of a much larger issue.
Can a Power of Attorney Evict a Family Member?
Whether a POA can evict a family member depends on the agent’s authority and the family member’s legal right to occupy the property.
If the family member is living rent-free, in violation of a lease, or refuses to vacate after the lease ends, the agent may initiate eviction proceedings just as a landlord would.
California law does not provide special eviction protections for family members; standard landlord-tenant laws apply. To proceed lawfully, the agent should consult a qualified attorney to ensure compliance with notice and filing requirements.
Related Article: What Are My Rights if My Name is On a Deed in California?
Who Can Override a Power of Attorney?
A court can suspend or revoke a POA for good cause. The principal may also revoke it at any time while competent. These are usually the only two parties who can override a POA.
While other interested parties cannot immediately override a POA, they can work with a lawyer and petition to have it revoked if they are concerned with how an agent is managing their loved one’s affairs.
What Is the Statute of Limitations on Power of Attorney Abuse?
While there is no specific statute of limitations on POA abuse, there is a statute of limitations that applies to breach of fiduciary duty claims and elder abuse claims, which is four years from the discovery of the abuse.
Still, shorter or longer periods may apply depending on your situation. Consulting an attorney as soon as possible is key in these situations.
What Are Power of Attorney Responsibilities to Siblings?
An agent does not have to answer to siblings but must act in the best interest of the principal. Siblings may seek legal intervention if they are concerned and an agent breaches this duty.
Disclaimer:
The information provided on this website does not, and is not intended to, constitute legal advice. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client relationship between the reader, user, or browser and Gokal Law Group, Inc. All information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.
Readers of this website should contact an attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.