The trustee of a revocable living trust may have much the same authority to deal with someone's finances as the agent does in a durable power of attorney. Even if he has a living trust, however, it's still a good idea for him to execute a durable power of attorney for finances. (He could name the same person to both jobs -- trustee of the living trust and agent in the power of attorney.)
The reason it's wise to have a separate document is that not all his income and assets may wind up in the living trust; if some income or asset comes to him after he's incapacitated or wasn't placed in the trust through some oversight, the trustee would have no authority over it.
Hello Anonymous, Thank you for your email. Here is an Ask & Answer page all about POA and liability over debts: ( http://www.caring.com/questions/power-of-attorney-debts ). I hope that helps. Take care -- Emily | Community Manager
Question for you: I f you do have a power of attorney, and are paying the bills for care, and the parent runs up a huge debt without you knowing on an unknown new credit card, are you responsible?
We are going through this right now - and the articles are very much appreciated.