Duties of a Financial Power of Attorney Agent 

A Durable (Financial) Power of Attorney is a legal document that authorizes someone (the “agent” or “attorney in fact”) to manage the financial affairs of another person (the “principal”).  This document can be vitally important in many circumstances and is a common document in a person’s estate plan.  However, oftentimes, these documents are drafted and executed without ever giving the named agent(s) notice of the nomination.  In turn, that agent may have no idea what the duties of the role entail.   

Occasionally, when this authority is exercised by an agent, the agent faces unexpected pitfalls from a financial institution, other family members, or even the principal!  The Ohio Revised Code* provides some guidance on how a power of attorney agent, if the agent accepts the appointment, needs to exercise his or her authority: 

• Act in the Principal’s best interest 

• Avoid conflicts that impairs the ability to act in principal’s best interest 

• Act in good faith, loyally, competently, and with diligence 

• Do nothing beyond the authority granted in the PoA 

• Attempt to preserve the Principal’s estate plan 

• Keep records of all transactions 

• Cooperate with the Health Care Power of Attorney agent (but always act in the Principal’s best interest) 

These duties may seem obvious at first blush, but a particular set of circumstances can quickly muddy what was first a clear situation.  Consider some of the following (real-life) situations: 

• The Principal is becoming aggressive or abrasive with you or another person 

• The Principal agrees with you (or your decision-making) one day, but disagrees with you the next day 

• Your Principal forbids you to do something that is in the Principal’s best interest (such as pursuing long-term care options for the Principal)

• A financial institution is not accepting the power of attorney document 

When these issues come up, it’s a good idea to recall what the statute says about your duties as an agent, and consult an experienced attorney that can help you, as agent, navigate a confusing set of circumstances. 

*Ohio Revised Code § 1337.37