A power of attorney (POA) is a legal document that allows you to act on behalf of someone else. It can be used to manage someone’s financial affairs, medical decisions, or other legal matters. In the UK, it is important to understand that a POA does not transfer the debts of the person you are representing to you.
When it comes to debts, the POA holder is only responsible for the debts of the person they are representing if they are a party to the debt. This means that if the POA holder has signed a contract or agreement on behalf of the person they are representing, they are liable for any debts associated with that contract. However, if the POA holder has not signed any documents, they are not liable for any debts incurred by the person they are representing.
It is important to note that a POA does not give the holder the right to incur debt on behalf of the person they are representing. Any debts that are incurred must be done so with the express permission of the person they are representing. If the POA holder does incur debt without the permission of the person they are representing, they may be held liable for the debt.
In summary, a POA does not transfer the debts of the person you are representing to you. Unless you are party to the debt, your only responsibility is to execute their wishes as stipulated in the contract. It is important to remember that a POA does not give you the right to incur debt on behalf of the person you are representing and any debts that are incurred must be done so with the express permission of the person you are representing.
If you are considering setting up a POA, it is important to seek legal advice to ensure that you understand your rights and responsibilities. This will help to ensure that you are aware of any potential liabilities and can make informed decisions.
This article was written on 19 October 2022.
