Power of Attorney Responsibilities

• An individual, including a family member or private professional, acting under a power of attorney has a duty to act in the best interests of the estate he's managing for his client or relative. This means he must carefully administer the estate's finances to best manage the estate's debts and preserve existing assets without running the client's or relative's financial portfolio into the fiscal earth. Part of this strategy usually involves keeping the assets of the estate totally separate from the individual exercising abilities under a power of attorney.
  
  

Limiting Power of Attorney

• A consumer creating a power of attorney for a private professional or relative to manage her financial affairs can limit the scope of the agent's powers, according to Nolo, a legal information website. The document can specifically bar the agent from transferring assets from the estate into the agent's name as well as bar the agent's access to specific bank accounts. This can provide a layer of protection for the estate and allow the agent operating under a power of attorney more focus in directing financial management activities.
  
  

Conflicts of Interest

• A conflict of interest occurs under a power of attorney when the agent managing the financial affairs of the estate stands to benefit from the performance of the estate's investments, the sale of assets or the death of the account holder. An agent creating the conditions for a conflict of interest to occur through adding his name as a payee on bank accounts and investments is at the very least highly unethical. Family members noticing the agent's activities regarding the estate's accounts should contact the police, report the agent to any applicable professional licensing board and seek to formally revoke the power of attorney.
  
  

Theft and Fraud

• An agent with a power of attorney adding her name as a beneficiary on a client's bank accounts and investments is committing a host of criminal offenses, including embezzlement and fraud. Embezzlement and fraud are felony-level offenses that can carry significant prison time and fines depending on the amount of money the agent obtains from the estate illegally. Family members may also be able to sue the agent for damages relating to the pain and suffering caused by the agent's illegal activity.