Legal Question in Credit and Debt Law in Wisconsin
Outstanding Debt
Is a POA responsible for his mother's outstanding debt? Mother's pension is frozen for her nursing home care and her husband is deceased.
1 Answer from Attorneys
Outstanding Debt--Is Agent Under POA (Power of Atty.) Personally Responsible
Outstanding Debt of Ward, Is Agent Under POA (Power of Attorney) Personally Responsible?
Any agent is generally not personally responsible for accounts receivable of his principal, so long as he clearly discloses his that he is acting as an agent and not on his own behalf. However, medical providers frequently require the person who brings another in for health care to sign a responsibility form. This can create a new contractual relationship between the agent/POA and the health care provider if it is not done carefully (limiting the POA or guardian's personal responsibility). Of course, the ward's estate is liable for the costs of the health care and any other lawful debts.