When someone grants you authority through a power of attorney, you're taking on serious responsibilities that go far beyond simply signing a few documents. Under Florida law, agents operate under strict fiduciary obligations that carry both legal and ethical weight. Many people accept this role without fully grasping what they're agreeing to, only to find themselves navigating complex duties they never anticipated.
The Fiduciary Foundation of Agent Authority
An agent under a power of attorney is a fiduciary, which fundamentally shapes every decision and action you take on behalf of the principal. This isn't just a technical legal term. A fiduciary relationship involves trust and confidence, where one person depends on another to serve their interests. The principal has placed their financial health, property, and potentially their healthcare decisions in your hands.
You must act only within the scope of authority granted in the power of attorney. The legal document itself defines the boundaries of what you can and cannot do. Some principals grant broad authority over all financial matters, while others limit agents to specific transactions like selling property or managing bank accounts. Understanding fiduciary duty helps agents navigate their legal responsibilities and avoid potential conflicts of interest.
Core Obligations Every Agent Must Follow
Agents must act in good faith and may not act in a manner contrary to the principal's best interests. Florida law establishes clear requirements that every agent must follow when exercising authority under a power of attorney. These obligations protect both the principal and the agent from potential conflicts and liability.
The following core duties apply to all agents under Florida Power of Attorney law:
- Act within reasonable expectations. You may not act contrary to the principal's reasonable expectations actually known by you, even if you believe a different course would be financially beneficial.
- Preserve the estate plan. You must attempt to preserve the principal's estate plan to the extent actually known, considering the value of property, foreseeable obligations, tax minimization, and eligibility for government benefits.
- Maintain good faith. All decisions and actions must be made in good faith and solely for the benefit of the principal, not for your personal advantage.
When estate planning includes powers of attorney documents, coordinating these elements becomes essential for comprehensive protection. Your duty isn't to do what you think is best, it's to act according to what serves the principal's actual needs and preferences based on their expressed wishes and known intentions. The principal's guidance takes precedence over your personal judgment about what might benefit the estate financially.
Record Keeping and Financial Management Requirements
You must keep a record of all receipts, disbursements, and transactions made on behalf of the principal. This isn't a suggestion for good practice, it's a legal obligation under Florida Power of Attorney law. Every check you write, every financial decision you execute, and every property transaction needs documentation. These records protect both you and the principal from liability.
If the power of attorney authorizes access to the principal's safe-deposit box, you must create and maintain an accurate inventory each time you access it. This level of detailed accountability applies across all aspects of property management and financial oversight.
Agents must act with the care, competence, and diligence ordinarily exercised by agents in similar circumstances. If you were selected because of special skills or expertise, or represented that you had such skills, those abilities must be considered in determining whether you acted appropriately. An agent who is a financial professional faces higher standards than an agent without such background when managing the principal's property.
Limitations on Agent Authority and Delegation
The power of attorney grants you authority to act for the principal, but that authority comes with specific limitations designed to protect the principal's interests. Florida law restricts certain actions to prevent conflicts of interest and ensure agents remain focused on the principal's welfare. Understanding these boundaries helps you avoid overstepping your role and potential liability.
Agents face the following restrictions on their authority:
- No delegation of core responsibilities. You may not delegate authority to a third person except as authorized by statute or the power of attorney itself, though you may hire professionals like accountants and lawyers to assist with specific tasks.
- Avoid conflicts of interest. You must act loyally for the sole benefit of the principal and avoid creating any conflict of interest that impairs your ability to act impartially in the principal's best interest.
- No personal financial benefit. Your personal financial interests cannot influence decisions about the principal's property or healthcare, ensuring all actions serve the principal exclusively.
Professional guardians in Florida follow similar fiduciary standards, demonstrating how seriously the state takes these obligations. The principal chose you specifically to act on their behalf based on trust in your judgment and character. While you can seek professional assistance for complex matters, the ultimate responsibility for decisions remains with you as the appointed agent under the power of attorney.
Disclosure Requirements and Accountability
You are not required to disclose receipts, disbursements, or transactions unless ordered by a court or requested by the principal, a guardian, another fiduciary, a governmental agency protecting the principal's welfare, or upon the death of the principal, by the personal representative or successor in interest. However, if requested, you must comply within 60 days or provide written substantiation why additional time is needed and comply within an additional 60 days.
While a power of attorney gives you authority to act on behalf of the principal, you are not required to serve. But once you accept the responsibility and begin acting as agent, there is a duty to act prudently under Florida law.
Protection from Liability When Acting in Good Faith
If you act in good faith, you are not liable to any beneficiary of the principal's estate plan for failure to preserve the plan. Absent a breach of duty to the principal, you are not liable if the value of the principal's property declines. Markets fluctuate, and property values change. As long as you made decisions with care, competence, and in the principal's best interest, normal financial losses don't create liability for the agent.
The statutory framework in Florida provides these protections precisely because agents need the capacity to make decisions without fear of personal liability for outcomes beyond their control. Your obligations focus on the process and the consent of the principal, not guaranteeing specific financial results. Powers of attorney rank among the essential estate planning documents for 2025, requiring careful consideration and regular review to ensure they remain effective.
Healthcare Decision Coordination
You must cooperate with a person who has authority to make healthcare decisions for the principal in order to carry out the principal's reasonable expectations to the extent actually known by you. Financial decisions often intersect with healthcare needs, and coordination between agents helps serve the principal comprehensively.
The statutory framework provides guidance on authority to manage property and execute financial decisions while respecting the principal's wishes and protecting their interests across all aspects of care.
When Professional Guidance Becomes Essential
Understanding agent duties and responsibilities protects both you and the principal. The authority granted through a power of attorney comes with substantial legal obligations that demand careful attention, detailed record-keeping, and unwavering focus on the principal's best interest.
If you're navigating power of attorney responsibilities in South Florida, consulting with experienced legal counsel can help you understand your specific obligations and avoid potential liability. The probate process in Fort Lauderdale and surrounding counties often involves powers of attorney, making it essential to understand how these documents function within the broader estate administration framework.
Whether you're creating a power of attorney, accepting appointment as an agent, or managing an estate that involves multiple fiduciaries, inheritance matters in Florida require careful navigation of complex legal obligations. Your role as an agent carries significant weight, and understanding these duties from the outset helps protect everyone involved.
