POA Liability

[sunshine20]

What is the name of your state (only U.S. law)? New York

I have been the POA for my mother for over 10 years. She was diagnosed with a brain tumor in '93 and was in an assisted living facility up until June of 2008. She broke her ankle, needing rehab in a Nursing Home. I was her "representative" to go there and sign paperwork, gave them my official POA form and get her short term medicaid. I was told she could have up to $11,000 to re-enter the community which we wanted her to do after she healed. But she still received SS checks and Disability checks during her stay at rehab but I had to hold onto them to pay the assisting living facility once she was well enough to return. She did return but unfortunately has wound up long term in another nursing home, which takes all her income plus supplements it with Medicaid. I just received a collection agency's notice stating I owe the Rehab facility $19,000 for her stay there. Since I was signing as her POA, I do not owe them, my mother, the resident would correct? I contacted a lawyer and they said I could have a judgment put against me and taken to court, etc. Please help. Shouldn't they be trying to get the money from my mother, not me?

[nascar8807]

First I have a question--- is "SS" stand for social security? And if that the case how do you get both S.S and disability checks???

Second- I took care of my grandmother and which I was a POA on her and she rec'd the bills not me. After she passed no one came on me for her bills so I don't understand why you would. Course I am in MIchigan so don't know if that makes a difference.

[JETX]

Originally Posted by sunshine20

Since I was signing as her POA, I do not owe them, my mother, the resident would correct?

It depends ENTIRELY on the exact terms of the document you signed.... and how you signed them.

I contacted a lawyer and they said I could have a judgment put against me and taken to court, etc.

Presumably, this attorney was able to review the documents. If so, then he/she will have far more accurate information than you have provided here... making their opinion very likely accurate.

[sunshine20]

First response to nascar: I shared a joint checking account with her and the Social Sec. and disability checks were direct deposited to our acct. I had to have my name on the acct b/c she was not able to take care of her own finances.

second response to jetx:
I am going to the facility tomorrow to request to see the papers that I signed when she was first admitted. I thought by providing them with the POA papers, that no matter how it was signed they knew I was only her POA. Regarding your second answer, the lawyer I contacted has not seen the paperwork either, stating as well, it depended on how I signed them. I'm just not sure how I could be held responsible when I handed over the POA papers before signing anything at all. I guess I will see tomorrow when I pay them a visit. I thought that I have no liability or responsibility for the debts of my mother. A POA does not confer legal liability to third parties; rather, a POA only makes me liable to my mother.

[JETX]

Originally Posted by sunshine20

I thought that I have no liability or responsibility for the debts of my mother. A POA does not confer legal liability to third parties; rather, a POA only makes me liable to my mother.

If you signed the papers with "Jane Doe", you would be liable.
If you signed the papers with "Jane Doe, attorney in fact for Susan Doe", then you would likely NOT be personally liable.

Also, there is no such thing as a 'standard' power of attorney. There are several types.... such as a 'durable POA', 'financial POA', 'medical POA', etc.
That's because this legal document is tailored to each individual's situation. As a power of attorney agent, you must be familiar with all the terms of your power of attorney document.

A power of attorney is not an invitation to take charge of all your relative's affairs and do things your way. Your role as an agent is simply to carry out the instructions and wishes of your relative. Talk with your relative in detail about what he or she wants you to do and does not want you to do.

[sunshine20]

I have the POA in front of me and I'm not sure it states what "kind" of POA it is. Where would I find that?
It says Form 2229 Standard NYBTU Form 8038 General Power Of Attorney Statutory Short Form, Article 5, Title 15 of the NY General Obligations Law

I believe I signed the forms with just my name, because I had no knowledge to do otherwise. This POA was put into effect in 1998. I didn't know I had to sign with my name, POA as well. Thank you for your advice. It was much appreciated.

[latigo]

There is an old adage that says something like it is best to secure the barn doors while the horses are still inside the barn.

There is also a well-established rule of law that tells us that in contracting with third persons an agent must disclose the agency relationship. Meaning that the agent must make it clear to the third party that he is acting solely in that capacity and only in the name of his principal.

It doesn’t sound as if you did this, which is no doubt the reason your attorney advised that you could be on the hook to the care providers. And why JETX states you that you should have signed the admission agreement as acting in the capacity of an attorney-in-fact.

Next time lock the barn doors first! Like, find out what you are doing before doing it.

If we don’t "have “knowledge” of what we are doing, then maybe we shouldn't be doing it.

(Do I have perfect hindsight, or what?)

[Kiawah]

Also,

You should investigate titling the account to have her monies absolutely separate from yours....not a joint account with both your names on it. The guidance we had received from Veterans Administration working with our bank for direct deposit was:

Mother Sunshine
Daughter Sunshine Legal Custodian

Check with your lawyer and bank, for a better alternative than joint.

[JETX]

Actually, the better way to have your MOTHERS bank account set up is in HER name with you as an authorized signatory... and with ROS (Rights of Survivorship).

Simply, the money will remain hers... and you can sign checks on the account. In the event that she were to pass, then the funds would transfer directly to you without probate.