I'm a Power of Attorney...Now What?

Acting as a Power of Attorney in Michigan: An Educational Guide

Serving as someone’s power of attorney is an act of trust. When a person (the principal) signs a power of attorney, they are handing you the legal authority to manage important parts of their life—often finances, property, or other personal affairs. Michigan’s updated Uniform Power of Attorney Act, effective July 1, 2024, strengthens protections for principals and clarifies exactly what is expected of agents. This post breaks down those responsibilities in clear, practical terms so new or prospective agents understand what the role truly requires.

What It Means to “Accept” the Role

Under Michigan law, you officially accept your appointment as an agent the moment you begin acting under the authority granted to you. Before you act, you must sign an Agent’s Acknowledgment, a statutory form confirming that you understand your duties and agree to follow them.

This acknowledgment doesn’t give you extra powers—it simply confirms that you understand the obligations that come with the role.

Core Duties of a Power of Attorney Agent

Michigan law outlines specific fiduciary duties that apply even if the power of attorney document says otherwise. These duties exist to protect the principal and ensure you act responsibly.

1. Follow the Principal’s Known Wishes

If the principal has expressed preferences—how they like their bills paid, how they want property handled—you must follow those wishes when you know them. If you don’t know their preferences, you must act in their best interest.

2. Act in Good Faith

Good faith means honesty, fairness, and loyalty. Every action you take must be for the principal’s benefit, not your own.

3. Stay Within the Scope of Your Authority

A power of attorney can be broad or limited. You may only take actions the document authorizes.

4. Keep Detailed Records

You must maintain reasonable records of all receipts, disbursements, and transactions. This protects both you and the principal and ensures transparency.

5. Avoid Conflicts of Interest

You cannot take actions that benefit you at the principal’s expense. If you stand to benefit from a decision, you must ensure the action is still in the principal’s best interest.

6. Use Care, Competence, and Diligence

You are expected to act with the same level of care a prudent person would use when handling someone else’s property. If you were chosen because of special skills—such as financial expertise—you will be held to that higher standard.

7. Preserve the Principal’s Estate Plan

If you know the principal’s estate plan, you must try to preserve it when doing so aligns with their best interests. This includes considering:

• The value and nature of their property

• Their foreseeable needs

• Tax implications

• Eligibility for benefits or assistance programs

8. Cooperate With Healthcare Decision-Makers

If someone else holds medical decision-making authority (such as a patient advocate), you must cooperate with them to support the principal’s known or best-interest healthcare wishes.

Delegating Tasks

You may hire or delegate tasks to others—such as accountants, contractors, or investment professionals—so long as you use care and diligence in selecting and monitoring them. If you do that, you are not liable for their mistakes.

Final Thoughts

Acting as a power of attorney is a meaningful responsibility. You are stepping into someone else’s financial life, often during a vulnerable time. Michigan’s updated law provides clearer guidance than ever before, helping agents understand their obligations and principals feel secure in the authority they grant.

If you are preparing to serve as an agent—or drafting a power of attorney—it’s wise to consult with an attorney who can help ensure the document is properly tailored and that you understand your role.

*******This article is intended for general educational purposes and does not constitute legal advice. Reading this post does not create an attorney–client relationship, and the information may not reflect the most current developments in Michigan law or the specific procedures of your local probate court. Every situation is unique, and you should consult with a qualified attorney to obtain advice tailored to your circumstances. If you have questions about how these issues apply in Oakland County or elsewhere in Michigan, you are welcome to contact my office to discuss your situation.*******