Becoming someone’s power of attorney in Indiana is a significant undertaking, demanding both diligence and integrity. This role entrusts you with the authority to make crucial decisions on behalf of another person, the “principal,” who is no longer able to manage their own affairs. Understanding your responsibilities is paramount to fulfilling this duty ethically and legally.
Firstly, the scope of your authority is defined by the power of the attorney’s document itself. Indiana law recognizes both general and limited powers of attorney. A general power of attorney grants broad authority over financial and legal matters, while a limited power of attorney restricts your authority to specific actions or time limits, such as selling a particular property. Carefully reviewing the document is the first step in understanding the boundaries of your role.
Secondly, acting in the principal’s best interest is your paramount obligation. This fiduciary duty requires you to prioritize the principal’s needs above your own. You must avoid any conflicts of interest and ensure that all decisions are made with the principal’s well-being in mind. This includes managing finances prudently, paying bills timely, and making informed decisions about investments or property.
Thirdly, maintaining meticulous records is crucial. You must keep accurate and detailed accounts of all transactions made on the principal’s behalf. This includes receipts, bank statements, and any other relevant financial documentation. These records may be required for review by the principal, family members, or a court.
Fourthly, understanding the limitations of your authority is essential. You cannot make decisions that are explicitly prohibited by the power of attorney document, such as making gifts to yourself unless you are specifically authorized. You also cannot make healthcare decisions unless you are also appointed as the principal’s healthcare representative through a separate healthcare power of attorney and healthcare directives.
Fifthly, you are obligated to act in good faith. This means acting honestly and transparently in all dealings. If you have any doubts about a particular decision, it is advisable to seek legal counsel or consultation with the principal’s family.
Finally, recognizing when your authority ends is vital. The power of attorney typically terminates upon the principal’s death or incapacity, unless it is a durable power of attorney, which remains in effect even if the principal becomes incapacitated. If you are unsure about the validity of the power of attorney, it is best to seek legal advice.