Are there risks associated with giving your agent authority under a durable power of attorney?

As a durable power of attorney gives your agent the authority to access your financial accounts, transact business on your behalf, and obtain and share information about your finances, it is important to have a level of confidence in the person or organization you name as your agent.

However, when an agent abuses the authority granted under a power of attorney by acting carelessly, recklessly, negligently, or illegally, they are liable for their actions and can be prosecuted under the laws of your state. A properly drafted power of attorney will narrowly define the agent’s powers to those specifically needed and will set forth limitations on the agent’s authority.

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