POA Liability

I live in New Mexico and divorced my ex-husband about 1 year ago. We still chat every now and then and he called me with a question. He wanted to know if I would be his POA while he went overseas for a job training security in exchange for $1,000 per month. My worry is that if I agree I could be held responsible if he bounces an account or messes up in some other way with his finances. I do not want to be liable for any mistakes he personally makes with his finances or any debt he may accrue while overseas. If I agree to his proposition will I be liable?

SYardis said:

I live in New Mexico and divorced my ex-husband about 1 year ago. We still chat every now and then and he called me with a question. He wanted to know if I would be his POA while he went overseas for a job training security in exchange for $1,000 per month. My worry is that if I agree I could be held responsible if he bounces an account or messes up in some other way with his finances. I do not want to be liable for any mistakes he personally makes with his finances or any debt he may accrue while overseas. If I agree to his proposition will I be liable?

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He's going to pay you $1,000.00 per month just to be his POA or is he sending you $1,000.00 per month to pay his bills?

He wants to pay me $1,000 per month to pay his bills. The only way he could think to do this so that I would not be responsible if he bounced his account or bought something new is by making me his POA. Does that make me responsible? Or is there another way that would work where I would not be held responsible for these things?

If that worries you, then have him pre-sign a book of checks. He can write in the payee, and the signature. You write in the amount, and everyone is happy.

Give you a couple spares with just the signature line signed for unknown need, and you are good to go!

or.....have him just set up all of his accounts to do autodraft from his checking account. Then nobody has to do anything.

Kiawah said:

I.

Give you a couple spares with just the signature line signed for unknown need, and you are good to go!

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Kiawah, Don't give anymore advice. Telling someone to do the above is just asking for them to lose the money. Anyone could take one of those checks and write it for any amount, resulting in big losses and tons of headaches.

Or is there another way that would work where I would not be held responsible for these things?


I understand the concern. Just giving a couple of alternatives that would get the bills paid since no one else had given any suggestions, never claimed there might not be any risk. With care, she certainly could be able to handle the security of a couple pre-signed checks, it's more secure than a stack of money (as it's at least traceable)!

Company to bank autodrafts from his checking is obviously a preferable alternative, she would not be involved at all. He may not have enough time to get that all set up though before he leaves, though.

I guess yet another alternative, is that he could write to her a bunch of checks, which she could then deposit into her checking account as needed, and then write checks from her own account to cover the bills. Not an alternative I'd want to be involved with because of the risk of NSF, but I guess that's another option.

Kiawah said:

Or is there another way that would work where I would not be held responsible for these things?

I understand the concern. Just giving a couple of alternatives that would get the bills paid since no one else had given any suggestions...

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That's because there is no need for suggestions. As long as the OP acts within the powers granted by the POA and does not engage in self-dealing, she'll be OK.

The principal granting a POA generally does not give up freedom to act and the agent is not responsible for the principal's actions.

No idea what New Mexico law is concerning POA's. But, if it is a concern, have an attorney draw up the document.

(And, if you are really serious about accepting the $1K per month, have that written into the document.)