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does my sibling have to document everything they do once they become power of attorney

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If the POA is handling finances then they need solid records, yes. They are accountable for every penny into and out of the accounts that they are POA on. This is done with files and records and receipts.
HOWEVER this isn't your business and you have no right EVER to ask to see any of these records or receipts. The POA is accountable only to a mentally able Principal (who appointed him or her) and to the COURTS if the Principal has dementia.

If you are writing us about this it would seem you have some reason to question things and suspect fraud? If this is the case you have a right to see an attorney who may take your plea for examination of records to a Judge of the court. The judge has a right to examine the records of the POA.

If you have proof of fraud you can also call APS and ask that they examine the elder, the living situation, the records.
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Reply to AlvaDeer
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It depends on which state’s laws apply to the Power of Attorney (POA), so the best thing to do is talk to an elder law/estate attorney in that state. If you share which state applies, other posters may have more information—but I’ll try to give a general overview here.

State laws vary in how they protect the principal (the person signing the POA) and regulate the agent (the person given authority). Some states have stricter requirements. But regardless of state law, an agent should always document everything and keep good records. This isn’t just about legal rules—it’s about ethics and best practice.

For a good start, an agent under a financial POA should: 1) regularly review and reconcile financial accounts; 2) keep a list of all assets, debts, and monthly expenses; 3) have a basic care plan for current/future needs; and 4) document major decisions (keep receipts and notes). Basically, if they’re wondering whether to document something, they probably should!

It’s also important to use qualified/licensed professionals (accountants, attorneys, etc.). This provides oversight and creates a third-party paper trail. One legal question to ask an attorney is: “Can an agent use a financial planner to manage investments?” This is important because of a law called the Uniform Prudent Investor Act (UPIA)—it’s worth researching and asking a lawyer.

If you worried about knowing what's going on, a lawyer can say what information you could request. Ideally, the person signing the POA should talk with everyone about whether they want to keep family in the loop or keep it private. Hope that helps get you started! Others here will hopefully have more to add.
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Reply to AveryHom
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Yes, but they don't have to show or prove anything to others unless their management is called into question by the courts.
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Reply to Geaton777
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They will need to keep receipts of all expenditures as POA. Every check will need to be accounted for especially those over $1,999.00 if Mediciad LTC will be needed in the near future. Any pattern of withdrawls or checks will need receipts or accountability through Credit Card statements. If they take vacations keep all records with their name that ties back to bank withdrawls, checks and credit card statements. Any large purchases should only be for the care or use of the person they are POA.

Your Sibling should also gather all bank statements and keep on file for 5 years (or more if they want to be very conservative) incase they need to apply for Mediciad LTC. It is easier to gather now than in a rushed timeframe.

POA is very much a job that should be treated like you will be audited at any moment.
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Reply to AMZebbC
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