Legal Question in Wills and Trusts in Georgia

Unless you have some very bizarre POA papers, no. You should call the lawyer that drafted the POA. The lawyer will also explain to you what NOT to do (like calling the bank).

No. First, do you have a health care power of attorney or a financial power of attorney or both? With a healthcare power, you can only make healthcare decisions for your cousin. If you have a financial power, then what the lady at the bank told you was partly true. You are NOT personally liable for your cousin's debts. However, the financial power of attorney obligates you to use your cousin's money to pay your cousin's bills. If your cousin has enough money to make the loan payments then you need to send in the payments out of your cousin's funds.

Remember, whenever you sign anything on behalf of your cousin, always sign like this:

signed by: [your name], as attorney in fact for [name of cousin].

Remember also to keep good records, only use your cousin's monies for his benefit and do not commingle your money and your cousin's money or property.

If there is not enough money to repay the loan, when did your cousin take out the loan and how close was it to his hospitalization? A basic tenet of contract law is that there must be a meeting of the minds. If your cousin did not have sufficient mental capacity, it is possible that he could avoid this contract if it was not for necessaries. I would have to do more research on this - the hospitalization and particular mental disorder of your cousin may not rise to the llevel of mental incompetency necessary.

Before you use the power of attorney, see if there are registration/recording requirements in the county where your cousin resided at the time of his hospitatlization. The power of attorney may need to be recorded at the courthouse and/or registered before you use it. In such case, make sure this is done. Make copies and send them to any creditors (like the bank) of your cousin so that they will knpow to deal only with you.