Q: My dad is 90 and my mom is 87. They are no longer capable of h handling their own affairs. I have been asked to take over as power of attorney by their friends. My only problem is, I have federal tax issues dating back ten years. Is there a risk that the IRS could get my parents life savings if I become their power of attorney? (Pittsburgh, PA)
A: The short answer is no. Generally, when acting as an Agent for the Principal under the legal parameters of a Power of Attorney, the Agent is acting in a fiduciary position and is not personally liable. The Agent should have not personal liability for the debts and expenses of the Principal. The Principal’s assets should not be subject to claims of the Agent’s creditors. It is only when the Agent acts outside the scope of his authority of the POA or acts illegally, can the Agent be subject to personal liability.