In planning for their later years in life, my parents want to have me become power of attorney, and to have control of their banking accounts, etc.
They are still of sound mind, etc, and I wouldn't need to do anything at this point, they would continue to do all banking, etc. I would just be "on their accounts" in case things deteriorate health-wise or one or both of them become injured or suddenly mentally incapacitated, etc.
My questions are:
- Does "being on their bank accounts" in a "power of attorney" scenario mean that I would become liable in the event they accrued debts, or got themselves into tax trouble, etc.?
- Are there any other "gotchas" or things I should watch out for or consider when entering such an arrangement?
To clarify a few points:
I am quite clear on the responsibilities of being a POA. They are well documented on the govt of Canada's website and many other places online.
I mainly want to make sure I don't end up holding the bag on any debt they may incur after I am added as financial POA but before I actually need to handle their finances and do anything with their accounts at all e.g. they are in their early 60s, and still of sound mind and good physical health, and will still do all of their banking on their own for the time being.