Legal Question in Wills and Trusts in Alabama
Can a person that has complete power of attorney cash a government bond willed out to another person before the person they have power of attorney for passes away without their knowledge?
1 Answer from Attorneys
Yes, if it is a "Durable Power of Attorney", it survives any incapacity of the person who has granted the Power of Attorney (known as the Principal). So, a person holding the Power of Attorney over another (called Agent) could cash in any asset, if that power is contained in the Power of Attorney, for the benefit of the Principal. The Agent has a "fiduciary duty" to the Principal. That is, they must handle the funds with all care, in the best interests of the Principal, and for the Principal's use and benefit, or they may be liable for damages to their Principal. In other words, a Power of Attorney, is not a license to take another's funds and do as you please with them. Upon the Principal's death, the Agent no longer has any power under the Power of Attorney.
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