Question

Agent’s Authority. Terry Holden’s stepmother, Rosie, was diagnosed with amyotrophic lateral sclerosis (ALS), and Terry’s wife, Susan, became Rosie’s primary caregiver. Rosie executed a durable power of attorney appointing Susan as her agent. Susan opened a joint bank account with Rosie at Bank of America, depositing $9,643.62 of Rosie’s funds. Susan used some of the money to pay for “household expenses to keep us going while we were taking care of her.” Rosie died three months later. Terry’s father, Charles, as executor of Rosie’s estate, filed a petition in a Texas state court against Susan for an accounting. What general duty did Susan owe Rosie as her agent? What does an agent’s duty of accounting require? Did Susan breach either of these duties? Explain.

Answer 1

There are diferrent types of Powers of Attorney that include Nondurable, Durable, and Springing or Health Care Power of Attorney.

1. ?As in the above question Susan who was appointed as a Durable power of attorney the word "Durable" implies that she can act as an agent for the Principal "Rosie" even if she is not mentally competent or physically able to make decisions. The durable Power of Attorney may be used immediately, and is effective until it is revoked by her, or until the Rosie's death. In terms of Susan's duties, she was entitled to take care of Medical and Finance such as medical care, paying bills, household expenses and managing investments.
2. In terms of accounting duties an Agent need to keep a track on the principal's accounts and investments such as take care of taxes and deductions while filing tax returns using principal's social security no. and reporting to the probate court if a petition is filed requesting an accounting., investing principal's assets in a conservative manner resulting to a reasonable growth. As an agent she must not mix principal's assets with her own or to use her asset unless principal gives an authorization for it.
3. I believe Susan did not breach either of her duties as mentioned by Terry's father, the executor of Rosie's estate because in the above description its acknowledged that she had use the Principal's money from the joint bank a/c for "household expenses". As no further in depth details were stated, we shoud assume that Terry's wife didn't void any duties as an agent but as the principal "Rosie" is died, Susan is no more in a position to hold the "Durable Power of Attorney" anymore.