Maine Power of Attorney Agent Duties: What You're Legally Required to Do

Being named as someone's agent under a power of attorney is a serious legal responsibility — not an honor or a formality. In Maine, agents (also called "attorneys-in-fact") are held to the same fiduciary standard as trustees, which means you face personal civil and criminal liability if you breach your duties.

Your Core Fiduciary Duties

Under the Maine Uniform Power of Attorney Act (18-C M.R.S. Article 5, Part 9) and the mandatory "Notice to Agent" required by § 5-905, you must:

Act in Good Faith

Every decision you make must serve the principal's interests, not your own. If the principal gave you broad financial authority, that doesn't mean you can use their money for whatever you think is appropriate. You must make decisions the principal would have made, or that a reasonable person in the principal's circumstances would make.

Maintain Loyalty

Your duty of loyalty means you cannot put your own interests ahead of the principal's. You cannot:

• Use the principal's assets for your own benefit (unless the POA explicitly authorizes it)
• Take business opportunities that belong to the principal
• Act where you have a conflict of interest
• Favor yourself or your family in financial decisions involving the principal's assets

Avoid Self-Dealing and Commingling

This is where agents most commonly get into trouble. You must keep the principal's funds completely separate from your own. Open a dedicated bank account for their finances. Never deposit their money into your personal account, even temporarily. Never pay your personal bills from their accounts.

Self-dealing — using your position to benefit yourself — triggers both civil liability (you can be sued for disgorgement of any benefit you received) and criminal liability under Maine law.

Keep Records

You are required to maintain detailed records of every transaction, payment, and financial decision you make on the principal's behalf. This includes:

• Bank statements and account balances
• Bills paid and debts managed
• Investment decisions and their outcomes
• Property transactions
• Tax filings
• Any distributions made to beneficiaries

If the principal, their family, or a court asks to see your records, you must be able to produce a complete accounting. "I don't remember" or "I didn't keep track" is not a defense.

Act Within Your Scope

A POA grants specific powers — read the document carefully. If it grants general financial authority, you can manage banking, investments, and bill payment. But "hot powers" like gifting, trust creation, and beneficiary changes require explicit authorization under 18-C M.R.S. § 5-931. Acting outside your granted scope exposes you to personal liability and may void the transactions you attempted.

What Happens If You Breach These Duties

Maine takes fiduciary breaches seriously:

• Civil liability — The principal (or their family/estate) can sue you for any losses caused by your breach, plus attorney's fees. You may be required to return any benefit you received
• Criminal prosecution — Misuse of a principal's assets can constitute theft, fraud, or exploitation of an elderly or incapacitated person under Maine criminal law
• Court removal — A probate court can remove you as agent and appoint a replacement, potentially a court-supervised conservator
• Personal surcharge — If you managed assets negligently and the principal suffered financial loss, you can be personally surcharged for the difference

Practical Guidance for New Agents

If you've just been named as agent for a parent or family member:

1. Read the entire POA document — Understand exactly what powers you have and what you don't
2. Open a separate bank account for the principal's finances — Never mix funds
3. Set up a simple spreadsheet tracking every transaction with dates, amounts, and purposes
4. Save all receipts — Digital or physical, keep a record of every expenditure
5. Consult before making major decisions — Large purchases, property sales, or investment changes should be documented with your reasoning
6. Don't make gifts to yourself unless the POA explicitly grants gifting authority and you're within the authorized limits

The Maine Power of Attorney Kit includes a transaction log template and agent duty reference sheet that makes compliance practical from day one.

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