Indiana Financial Power of Attorney: Powers, Limits, and Agent Duties

A financial power of attorney in Indiana gives someone the legal authority to manage another person's money, property, and financial affairs. The scope can be broad or narrow depending on how the document is drafted — but the agent's duties are set by statute regardless of what the document says.

Here's what agents can actually do, where the hard limits are, and the fiduciary obligations that come with the role.

What Powers Can Be Granted

Under Indiana Code § 30-5-5, a principal can delegate authority over virtually any financial matter:

• Banking: Deposits, withdrawals, transfers, opening and closing accounts, managing CDs and safe deposit boxes
• Investments: Buying, selling, and managing securities, mutual funds, and brokerage accounts
• Real estate: Purchasing, selling, leasing, refinancing, and managing rental properties (requires the POA be recorded with the county recorder — $25 flat fee)
• Tax filings: Preparing and submitting federal and state returns, signing IRS forms, negotiating with the DOR
• Insurance: Filing claims, changing beneficiaries, managing premiums
• Government benefits: Applying for Social Security, Medicare, Medicaid, and veterans benefits
• Business operations: Managing LLCs, partnerships, or sole proprietorships the principal owns

The key principle: if the document doesn't specifically grant a power, the agent doesn't have it. Generic "all financial matters" language covers the statutory defaults, but two areas demand explicit authorization.

Gifting Authority Requires Specific Language

Under Indiana law, an agent cannot make gifts of the principal's assets unless the POA explicitly grants gifting authority. This catches many families off guard during Medicaid planning or annual gift tax strategies.

Even when gifting is authorized, the default statutory limit caps gifts at the annual federal gift tax exclusion amount — $19,000 per recipient in 2026. Gifts exceeding this amount require:

• Explicit language in the POA authorizing larger gifts
• Alignment with the principal's personal history and estate planning goals
• Documentation showing the gifts serve the principal's tax objectives or long-term care needs

An agent who makes unauthorized gifts can be held personally liable for the full amount, plus damages.

Pension and Retirement Account Rules

The Indiana Public Retirement System (INPRS) has its own agent-verification requirements that go beyond what the statute demands. To manage a public employee's pension benefits under a POA, the agent must:

1. File a copy of the POA directly with INPRS
2. Ensure the copy displays a visible notary seal
3. Include the specific phrase: "Copy has the same force and effect as the Original"

Without all three, INPRS will reject the agent's authority. Alternatively, INPRS provides its own limited POA form (State Form 49614) that covers pension transactions only.

Private retirement accounts (IRAs, 401(k)s) have their own custodian-specific requirements. Most brokerage firms require the POA be on file before the agent can act, and some insist on reviewing the document with their legal department — a process that can take weeks.

The Agent's Fiduciary Duties

Serving as agent under an Indiana financial POA is a fiduciary role, not a blank check. The agent must:

• Act in the principal's best interest — not their own, not other family members'
• Keep the principal's assets separate from their own funds (no commingling)
• Maintain records of every transaction made on the principal's behalf
• Follow the principal's instructions when the principal still has capacity — the POA doesn't override the principal's own authority

An agent who self-deals, comingles funds, or makes decisions that benefit themselves at the principal's expense can be sued by the principal, other family members, or a court-appointed guardian. Indiana courts can order full disgorgement of any improperly obtained assets plus damages.

When Authority Ends

A financial POA terminates immediately upon any of these events:

• The principal dies — the agent has zero authority over estate assets after death; that authority shifts to the executor or personal representative
• The principal revokes the POA in writing
• A court appoints a guardian with authority over the same matters (though the guardian cannot revoke the POA without a specific court order)
• The document contains an expiration date that passes

The death-termination rule is the most commonly misunderstood. Families who relied on a POA to manage a parent's finances are often stunned to discover they're locked out of every account the moment the parent dies — sometimes before they can even pay for the funeral.

Protect Your Family's Financial Authority

The Indiana Power of Attorney Kit includes the specific grant language banks and institutions require, including gifting provisions, INPRS pension requirements, and real estate recording checklists — built for Indiana's rules, not generic national templates.

See more Indiana guides →