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For powers of attorney dealing with real estate it is important to make them in recordable form in compliance with Virginia recordation laws. Additionally, if real estate is located in another state there may be additional requirements which that state imposes for recording deeds and powers of attorney.
One major downfall of a POA is the agent may act in ways or do things that the principal had not intended. There is no direct oversight of the agent's activities by anyone other than you, the principal. This can lend a hand to situations such as elder financial abuse and/or fraud.
The POA cannot transfer the responsibility to another Agent at any time. The POA cannot make any legal or financial decisions after the death of the Principal, at which point the Executor of the Estate would take over. The POA cannot distribute inheritances or transfer assets after the death of the Principal.
While you aren't financial liable, as the attorney-in-fact, you're still the point of contact for the principal's debts. Creditors have a right to attempt to collect the funds that are owed. They don't, however, have a right to harass you.
In Virginia, your power of attorney is automatically durable (meaning that it remains effective after your incapacitation) unless the document explicitly states otherwise. (Va. Code § 64.2-1602.)
Is an Agent Named in a Durable Power of Attorney Legally Responsible for the Debts of a Principal? An agent named in a durable power of attorney is generally not responsible for the debt of the principal unless they are a party to the debt or have acted outside the scope of their authority.
Requirements for a Power of Attorney The power of attorney must be signed by the principal or by another adult in the principal's presence and under the direction of the principal. The power of attorney is signed and acknowledged before a notary public or is signed by two witnesses.
If you are competent and wish to revoke a power of attorney, you will need to send a signed notarized letter revoking the power of attorney to every place your agent used the power of attorney, as well as every place the agent might use the power of attorney.