Financial Liability from Blanket Power of Attorney Binding towards heirs?

[Parth Vaidya]

I have a question on issuing a blanket power of attorney, if such power of attorney is issued by parents with a clause that their heirs will be liable to pay debt or any liabilities created by POA holder, without heir agreeing personally. Will the heir need to pay off the debt of parents from non-inherited and personal assets like salary?

[Dr. Ashok Dhamija]

As a general principle of law, the liability of the legal heirs to discharge debts of their parent extends only to the extent of the assets inherited by them from that parent. The children of a person cannot be made to pay the debts of their deceased father out of their own personal assets which are not due to inheritance.

This legal principle would also apply if such debt is created by the POA holder of the parent. The children will not be liable for such debt from their own personal assets or personal salaries, and their liability would be limited only to the extent of the assets inherited from such parent, if any.

     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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