Almost no one sets out to misuse a Power of Attorney. But a handful of honest mistakes cause the vast majority of problems. Learn them once, avoid them forever.
1. Mixing the money
Commingling the principal’s funds with your own is the single most damaging mistake. Keep their money in their accounts, always. It’s the fastest way to lose trust — and the law’s trust.
2. Not keeping records
If you can’t show what you did and why, you can’t defend it. Track every transaction, receipt, and major decision from day one. See recordkeeping for a Power of Attorney.
3. Acting outside the document
You can only do what the Power of Attorney actually authorizes. If a power isn’t granted — gifting, changing beneficiaries, selling property — assume you don’t have it until you confirm otherwise.
4. Signing your own name
Sign in your representative capacity, or you can be held personally liable. Here’s the exact format.
5. Using it after death
A Power of Attorney ends the moment the principal dies. Acting after that isn’t authority — it’s a problem. The executor takes over: Power of Attorney vs. executor.
6. Assuming it works everywhere for everything
Social Security ignores Powers of Attorney (here’s why), banks may scrutinize them, and a non-durable document ends at incapacity. Know your document and its limits.
7. Self-dealing
Never use the role to benefit yourself. Even reimbursement needs receipts and clear records. See can a Power of Attorney transfer money to themselves.
Avoid these seven and you’re already serving better than most. To learn the whole role with confidence, the POA Caregiver Program has you covered.
This article is plain-English education, not legal advice. Power of Attorney law varies by state, and reading it does not create an attorney–client relationship. For guidance on your specific situation, talk with a licensed attorney in your state.