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As the financial POA and child of an incapacitated parent (other

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parent deceased), what are the...
As the financial POA and child of an incapacitated parent (other parent deceased), what are the guidelines for appropriating the parent's cash/gift to self?
Submitted: 6 years ago.Category: Tax
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7/1/2011
Tax Professional: Richard, Tax Attorney replied 6 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55,790
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Good afternoon. Here is the guideline which are very strict. A person acting under a Durable Power of Attorney becomes the agent of the principal who appointed him or her. As agent, that person is what the law calls a "fiduciary." This means that person has a duty to act in the highest good faith for the principal's benefit. Unless the Power of Attorney specifically allows it, that person cannot use any of the property for that person's own benefit. For example, unless the document specifically says so, that person may not borrow money from the principal even if paying it back at the same or a higher interest rate that person would pay a bank. Also, that person can not sell any of the principal's property to him or herself, his or her friends, or his or her relatives even at a fair price unless the Power of Attorney makes it clear that such is authorized.

 

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

 

Richard
Richard, Tax Attorney
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