A power of attorney is a delegation of authority, not a transfer of ownership. The agent acts for the principal and with the principal's money, and state law imposes duties on that role — loyalty, care, record-keeping, and cooperation with the principal's estate plan. Most agents are family members doing an unpaid job under stress, and a great many concerns turn out to be missing receipts rather than misappropriation.
Still, the authority is broad and the oversight is thin, so it helps to know what the law expects and what tools exist if expectations are not met. Powers of attorney are governed by state statute; many states have enacted a version of the Uniform Power of Attorney Act, which sets out agent duties and provides remedies including a right to request an accounting and a court's power to terminate the agent's authority.
What an agent actually owes
Under the uniform act framework adopted in many states, an agent who accepts appointment must act in accordance with the principal's reasonable expectations where known, and otherwise in the principal's best interest; must act in good faith; and must act only within the scope of authority granted. Additional duties apply unless the document says otherwise — loyalty, avoiding conflicts of interest, care and competence, keeping records of receipts and disbursements, cooperating with the health care decision-maker, and attempting to preserve the principal's estate plan where that is consistent with the principal's best interest.
Two carry most of the practical weight. Record-keeping is the duty most often overlooked and the one that makes every other question answerable. Preserving the estate plan explains why an agent should not move assets in a way that quietly redirects who inherits — a risk connected to the conflicts described in our guide to which document controls which asset.
The general shape of the relationship is summarized in Cornell's power of attorney entry, and the model statute itself, with state adoption details, is published by the Uniform Law Commission.
Distinguishing disorganization from a real problem
Before escalating anything, sort the facts. Many situations that feel alarming to a distant relative are explainable, and confronting an agent who is doing a hard job well can fracture a family permanently.
| What is observed | Frequently benign explanation | When it warrants a closer look |
|---|---|---|
| Cash withdrawals from the account | In-home caregivers, groceries, and household help paid in cash | No receipts at all, amounts rising over time, or no matching services |
| Agent's name added to an account | Convenience arrangement so bills can be paid | Registration changed to joint survivorship, altering who inherits |
| Payments to the agent | Reimbursement for expenses advanced, or statutory compensation | Round-number transfers with no invoice, or compensation the document did not authorize |
| A new beneficiary designation | The principal made the change while fully capable | The agent signed it, and the document never granted that power |
| Property transferred to a relative | A planned benefits or family arrangement made with advice | No gifting authority in the document, or terms below market value |
| Refusal to share information | Privacy instincts, or uncertainty about what may be disclosed | Refusal continues after a lawful request for an accounting |
Practical step: Start with a calm, specific, written request rather than an accusation. "Can you send the last twelve months of bank statements and a summary of large payments?" is a request an honest agent can satisfy in an afternoon and a reasonable one to make. Keep a copy of what you sent and what came back.
Requesting an accounting
Many state statutes give specified people the right to request that an agent account for transactions — commonly the principal, a guardian or conservator, another fiduciary acting for the principal, a protective services agency, and in some states adult descendants or persons named in the principal's estate planning documents. Who holds the right varies, so check your state's provision before assuming standing.
A useful accounting covers a defined period: opening balance, income received, disbursements by category, transfers between accounts, any transaction in which the agent had a personal interest, and a closing balance, with statements attached. Where compensation was authorized, it should show what was taken and on what basis.
- The signed power of attorney itself, with every page, and any later amendment or revocation
- Bank and brokerage statements for the full period in question
- Deeds, closing statements, and title records for any real estate transferred
- Beneficiary designation change forms and the dates they were processed
- Care agreements, invoices, and receipts for services paid in cash
- Correspondence between the agent and financial institutions
- Medical records bearing on the principal's capacity at the time of key transactions
Revoking or changing an agent
A principal with capacity can revoke a power of attorney at any time. Revocation is straightforward in concept but only works if it is communicated where it matters.
- Sign a written revocation. Follow the same formalities used for the original document — notarization, and witnesses where the state requires them.
- Notify the agent in writing. Keep proof of delivery. An agent who has not received notice may continue to act, and third parties who deal with them in good faith are often protected.
- Notify every institution. Banks, brokerages, insurers, and the county recorder if a power of attorney was recorded for real estate purposes. Each one needs its own copy.
- Record the revocation. If the original was recorded, record the revocation in the same office so title searches show it.
- Execute a replacement. Leaving no agent creates a vacuum that may lead to a guardianship. Name a successor at the same appointment.
- Collect the originals. Ask for the return of every executed copy, even though revocation does not depend on getting them back.
If the principal no longer has capacity to revoke, the route is different. Interested parties can petition a court, which may compel an accounting, suspend or terminate the agent's authority, or appoint a guardian or conservator to take over. That last step is a significant one, and its costs and alternatives are compared in our guide to guardianship, conservatorship, and less restrictive alternatives.
Watch out: Family disagreement about how an agent spends money is not, by itself, misuse. Agents are entitled to exercise judgment within the authority granted, and courts are not a forum for second-guessing reasonable choices about care or spending. Reserve formal action for conduct outside the granted authority, undisclosed self-dealing, or a refusal to account.
Remedies when authority was exceeded
Where an agent has acted outside their authority or breached a duty, statutes in uniform-act states generally allow a court to order the agent to restore the principal's property to the position it would have occupied but for the breach, and to pay attorney's fees and costs in appropriate circumstances. Courts can also void transactions, impose a constructive trust, and terminate the agency.
Transfers can also be challenged after the principal's death by the estate representative, bringing the dispute into the probate forum alongside the procedures in our guide to creditor claims against an estate. Serious cases involving exploitation of an older or vulnerable adult may fall within state adult protective services jurisdiction and, sometimes, criminal statutes; reporting channels and local aging services are listed through the Administration for Community Living.
Designing a power of attorney that resists misuse
Most of the protection is available at drafting time and costs nothing extra. Grant only the powers actually needed, and make gifting, beneficiary changes, and trust amendments explicit choices rather than boilerplate. Name a monitor entitled to an annual accounting if your state's form permits it, and require periodic reporting in the document itself. Naming different people as health care agent and financial agent gives two people visibility.
These choices also help an honest agent, who otherwise operates with no structure for showing that things were handled properly. Pair the document with a clear inventory — the same discipline that makes trust funding verifiable.
Quick answers
Can an agent give themselves gifts from the principal's money?
Generally not unless the document expressly grants gifting authority, and many statutes further limit gifts to the agent absent specific language. Even with authority, the agent must act consistently with the principal's known intentions and best interest. Unauthorized self-gifting is the most common ground for a court to order property restored.
Does a power of attorney end when the principal dies?
Yes. Authority terminates at death, and anything done afterward is unauthorized. From that moment the estate's personal representative — appointed by the court or serving under a will — has authority over the assets. An agent who continues writing checks after death, even for legitimate expenses, is acting without a legal basis.
Can a bank refuse to accept a power of attorney?
Sometimes, though many state statutes now limit refusals and impose consequences for unreasonable rejection. Common legitimate reasons include a stale-looking document, an unverifiable signature, or a good-faith belief the principal was under undue influence. Institutions may also request a certification from the agent or an opinion of counsel, which the statute typically allows.
What if two siblings are named as co-agents and disagree?
Read the document first: it usually states whether co-agents must act jointly or may act independently. If joint action is required and they deadlock, a court can be asked to resolve the impasse or to modify the arrangement. Deadlock is a strong argument for naming a single agent with a named successor instead.
Is an accounting the same as a court case?
No, and most accountings never reach a courtroom. A written request satisfied with statements and a summary resolves the majority of concerns. Court involvement is the escalation available if a proper request is refused or the accounting reveals transactions the document did not authorize.
Where this leaves you
If you are the principal, review who holds your power of attorney and what it permits, and build in reporting before you need it. If you are the agent, keep contemporaneous records and never mix the principal's funds with your own — a separate account and a simple ledger answer nearly every question that can arise later.
If you are a concerned relative, start with a written request for records, check your state's accounting provision to see whether you hold the right to demand one, and reserve court action for authority actually exceeded rather than judgment you would have exercised differently. For the incapacity documents that sit alongside this one, see our guide to advance directives, and the broader sequence in the Estate & Elder Planning pathway. This is general information, not advice about a specific dispute.