If my sister has Mom's POA, and is sued by a creditor, is Mom's money at risk?
My Mom wants to name my sister as Power of Attorney. My sister is in credit consolidation and Mom worries that if my sister were sued by a creditor, the creditor would be able to take my Mom's money. Would Mom's money be at risk if my sister was sued by a creditor?
Expert Answer
Your Mom's money would NOT be at risk if your sister were her "Agent in Fact," authorized to act for your Mom under your Mom's Durable Power of Attorney (DPA). The principal of a DPA (your mom) is NOT legally responsible for debts of the perso she authorized in her DPA to act for her.
But...Ah with a lawyer, there's always a "But.": {But you knew that.], in the free and litigious United States, anyone can sue someone (anyone) else for anything. However, lawsuits are expensive. A creditor would have to pay a lawyer substantial fees to sue your Mom for your sister's debts. And the lawyer, and his client, would lose. So I doubt if any creditor would be willing to pay for no return.