So you’ve been named as someone’s financial power of attorney. First off—don’t panic. This happens to thousands of people every year, and while it’s a serious responsibility, it’s definitely manageable with the right information.
When a parent, spouse, or friend names you as their financial power of attorney in Florida, they’re placing their financial future in your hands.
Think of it as being handed the keys to someone else’s financial life. You’ll need to know which doors you can unlock, which ones stay closed, and how to handle everything with care. Let’s walk through what this means for you.
What is a Florida Financial Power of Attorney?
A Florida financial power of attorney is a legal document that gives you (the agent) the right to handle someone else’s (the principal’s) money and property.
Florida’s Power of Attorney sets clear rules about what you can and can’t do. Understanding these rules matters because:
- You could be personally responsible if you make mistakes
- Banks might refuse to honor the POA if you don’t follow proper procedures
- Your actions directly affect the principal’s financial well-being
In Florida, these documents start working as soon as they’re signed unless they say otherwise.
Your Main Duties as a Financial POA Agent
When you accept the role of agent under a Florida financial power of attorney, you take on these key responsibilities:
1. Act in the Principal’s Best Interest
Your most important job is to act in the principal’s best interest—not your own. This means making decisions that benefit them, not yourself, avoiding conflicts where your goals might clash with theirs, not mixing their money with your own, and keeping good records of all transactions.
2. Follow the Principal’s Reasonable Expectations
You should try to act according to what the principal would want, based on what you know about them and their wishes. If you don’t know what they would want, you must act in their best interest. This means following the instructions they’ve given you, making choices that match their values, and talking with them when possible about important decisions.
3. Act with Care and Diligence
As an agent, you must handle the principal’s affairs carefully. This doesn’t mean you need to be a financial expert, but you do need to take your duties seriously, make informed decisions, ask for help when needed, and avoid unnecessary risks with their assets.
4. Keep Good Records
Florida law requires agents to keep clear records of all actions taken under a power of attorney. You should keep receipts for all purchases, maintain a log of all transactions, save financial statements, and document the reasons for major decisions. Good record-keeping is one of the best ways to protect yourself from accusations of mishandling funds.
5. Keep the Principal’s Property Separate
Never mix the principal’s money or property with your own. Use separate bank accounts, don’t “borrow” from their funds, keep a clear title to property, and sign documents clearly in your capacity as agent.
Powers You May Have Under a Florida POA
The specific powers you have depend on what’s written in the power of attorney document. In Florida, these powers must be explicitly granted—they’re not assumed. Common powers include:
Banking and Financial Transactions
You may be able to open and manage bank accounts, write checks, access safe deposit boxes, and handle credit cards and loans.
Real Estate Management
You might have the authority to buy, sell, or lease property, manage rentals, pay property taxes, and make repairs.
Investment Decisions
The POA may allow you to buy and sell investments, manage retirement accounts, work with financial advisors, and reinvest dividends.
Government Benefits
You may be able to apply for benefits like Medicare or Social Security, manage payments, respond to communications, and appeal decisions.
Tax Matters
You might have the power to file tax returns, pay tax bills, deal with tax authorities, and make tax-related decisions.
Bill Payment and Debt Management
Most POAs allow you to pay bills, manage debts, negotiate with creditors, and ensure timely payments.
Under Florida Statute § 709.2109, a POA terminates upon the principal’s death, and in the case of non-durable POAs, upon the principal’s incapacity. The law also allows for termination when the purpose of the POA has been accomplished or when the principal explicitly revokes the document under Statute § 709.2110.
Actions You Cannot Take as a POA Agent in Florida
Even with a comprehensive power of attorney, there are important limitations on your authority. Florida law creates protective boundaries to safeguard the principal’s interests. Here’s what you generally cannot do:
- Make gifts of the principal’s property to yourself or others
- Change the principal’s estate plan or beneficiary designations
- Delegate your authority to someone else
- Act after the power of attorney ends due to revocation or death
- Act against the principal’s best interests even if they ask you to
Taking these prohibited actions could result in penalties, removal as an agent, or even criminal charges in cases of financial exploitation.
How to Handle Common Situations
Being a power of attorney agent often means navigating challenging situations. Here are some common scenarios you might face and how to handle them effectively:
When Banks Question Your Authority
If a bank refuses to honor the document, ask for the specific reason in writing, provide any additional documentation they request, have the principal contact the bank if possible, and consider getting an elder law attorney involved if needed.
When Family Members Disagree With Your Decisions
If conflicts arise, keep detailed records of your decisions, communicate clearly about what you’re doing and why, consider family meetings for major decisions, and consult with an attorney if conflicts escalate.
When the Principal’s Capacity Changes
If the principal begins to lose capacity, document any concerns, consult with their healthcare providers, follow their previously expressed wishes, and consider whether guardianship might be needed.
When the POA Needs to Be Revoked
If the principal wishes to revoke the POA, they must draft and sign a separate revocation document or execute a new POA that expressly states any previous POAs are revoked. As an agent, you must respect this decision and immediately cease acting on their behalf.
Having a strategy for these situations before they occur can help you respond confidently and appropriately. Communication, documentation, and professional guidance are your best tools when facing complex scenarios as a POA agent.
Avoiding Common Mistakes
Many POA agents face similar challenges and pitfalls. By understanding these common mistakes, you can take steps to avoid them and fulfill your role more effectively:
1. Using the Principal’s Funds for Your Benefit
Even small personal benefits from the principal’s assets can be considered financial exploitation. Never “borrow” from their accounts, use their credit cards for your expenses, take unauthorized compensation, or mix their funds with yours.
2. Making Gifts Without Clear Authority
Many Florida POAs don’t include gifting authority. Even if yours does, follow any specific limitations, don’t make gifts that harm the principal’s financial security, keep detailed records, and consider tax implications.
3. Failing to Keep Proper Records
Poor record-keeping can make it look like you’re hiding something, leave you unable to justify decisions, disorganize the principal’s finances, and potentially make you personally liable.
4. Acting Beyond Your Authority
Always check what powers the POA actually gives you. Some POAs are limited to specific transactions, some powers require explicit authorization, some actions may require court approval, and some things cannot be delegated at all.
5. Not Understanding the Type of POA
Florida recognizes different types of POAs (general, durable, and limited), each with different scopes and durations. Make sure you understand which type you’re working with and what that means for your authority, especially if the principal becomes incapacitated.
When uncertain about a particular action, it’s always better to seek professional advice first rather than risk making a costly mistake.
FAQs About Financial Power of Attorney in Florida
Can I be held personally liable for mistakes?
Yes, agents can be held personally liable for breaches of their fiduciary duty. If you mismanage funds or fail to act in the principal’s best interest, you could be required to repay money and might face additional penalties.
Can I pay myself for serving as a power of attorney?
Generally, you cannot pay yourself unless the POA document specifically authorizes compensation. Taking unauthorized compensation can be considered financial exploitation under Florida law.
What happens if I can no longer serve as POA?
If you become unwilling or unable to serve, provide written notice to the principal and any co-agents or successor agents. If no successor is named and the principal lacks capacity, a guardianship proceeding might be necessary.
Does a Florida POA need to be notarized?
Yes, Florida law requires powers of attorney to be signed by the principal in the presence of two witnesses, and the principal’s signature must be notarized.
Does a power of attorney give me the right to make medical decisions?
No. A financial power of attorney only covers financial and property matters. For healthcare decisions, the principal needs a separate Healthcare Surrogate Designation.
Getting Support in Your Role
Being someone’s financial agent is a big responsibility, but you don’t have to handle it alone. At Berg Bryant Elder Law Group, we help agents understand their duties and navigate complex situations with confidence.
If you’re serving as a financial power of attorney agent in Northeast Florida and have questions about your responsibilities, contact our team for guidance. Our elder law attorneys can help you protect both your loved one’s interests and your own peace of mind.
Author Bio
Kellen Bryant, Esq.
Founder
Florida Bar Board Certified Elder Law Attorney, Kellen Bryant focuses his law practice on advising and helping caregivers with a particular focus on asset protection and preservation from long-term care costs, creditors, and predators. Kellen Bryant is AV Preeminent® Rated, meaning his attorney peers rated him at the highest level of professional excellence. Kellen Bryant was nominated and selected as a Super Lawyer, Rising Star: 2022.
