Financial powers under a South Carolina power of attorney: what your agent can do

Short answer: Under South Carolina law, a properly executed financial power of attorney (POA) can authorize an agent to handle almost any of your financial and property matters — paying bills, managing bank and investment accounts, buying or selling real estate, filing taxes, and dealing with insurance or government benefits — subject to any limits you place in the document and to statutory limits. The South Carolina Uniform Power of Attorney Act governs how POAs work in this state (S.C. Code Ann. § 62‑5‑101 et seq.).

Detailed answer

1. What a financial power of attorney is

A financial power of attorney is a written document in which you (the principal) appoint another person (the agent or attorney-in-fact) to act on your behalf for financial and legal matters. A POA can be broad (general) or narrow (limited to specific tasks). It can also be durable (it continues if you become incapacitated) or non‑durable (it ends if you become incapacitated).

2. Common powers an agent can exercise in South Carolina

Unless you limit the document, a financial POA in South Carolina commonly gives the agent authority to:

Manage bank accounts: deposit, withdraw, transfer funds, and close accounts.
Pay bills and recurring household expenses.
Manage investments: buy and sell stocks, bonds, mutual funds and other securities.
Buy, sell, mortgage, lease, or manage real estate and sign deeds or closing documents.
Access safe deposit boxes and handle personal property.
Handle insurance matters: make claims, change coverage, collect proceeds.
Sign tax returns, represent you before tax authorities, and take other tax actions.
Manage business interests: run, buy, or sell a business or sign business contracts (if the POA says so).
Make or consent to gifts, subject to any restrictions you put in the POA.
Receive government benefits, apply for or manage Social Security, Medicare, Medicaid or veterans’ benefits, subject to specific rules and impact on eligibility.
Handle legal claims and litigation, engage lawyers, and settle claims on your behalf.
Access digital assets and accounts, to the extent the POA addresses digital property and applicable law allows.

These powers are broad by default, but you can narrow or exclude powers in the document. If you want specific limits (for example, prohibit gifts or business management), spell them out clearly.

3. When the agent can act: durable vs. non‑durable and “springing” POAs

Durable POA: If your POA is durable, the agent’s authority continues even if you become incapacitated. Many people use durable POAs so an agent can step in automatically when the principal cannot manage finances.

Non‑durable POA: Ends if you become incapacitated.

Springing POA: Becomes effective only after a specified event (often a doctor’s determination of incapacity). Springing POAs add complexity because financial institutions or third parties may require strict proof that the triggering condition occurred.

4. Limits on agent authority

Even when a POA grants broad powers, there are common limits:

It cannot give an agent authority to make health-care decisions unless the document also complies with South Carolina laws for health-care directives (health decisions are handled separately).
It cannot change your will or beneficiary designations in many situations.
Third parties (banks, title companies) may require additional documentation, notarization, or their own forms before accepting an agent’s authority.
State and federal benefits programs (like Medicaid) have special rules that an agent must follow to avoid affecting eligibility.

5. Agent duties, standards, and liability

South Carolina law imposes fiduciary duties on agents. Generally an agent must:

Act in the principal’s best interest.
Avoid conflicts of interest and self-dealing unless the POA authorizes specific actions.
Keep accurate records and account for transactions.
Follow the instructions and limitations in the POA document.

If an agent breaches these duties, the principal (or interested parties) may seek remedies in court, including removal of the agent or monetary damages.

6. How to make a valid financial POA in South Carolina

The South Carolina Uniform Power of Attorney Act provides the legal framework for drafting and interpreting POAs (S.C. Code Ann. § 62‑5‑101 et seq.).

Key practical steps:

Use clear, plain-language wording identifying the principal, the agent, the powers granted, and any limits or conditions.
State whether the POA is durable (continues upon incapacity) or non‑durable.
Include successor agents in case the first agent cannot serve.
Sign the POA as required under state law. Many financial institutions and real property transactions will require notarization and may require witness signatures or additional forms. To ensure acceptance, have the POA notarized.
Give copies to your agent(s), family members, and relevant financial institutions. Keep the original in a safe but accessible place.

7. How banks, investment firms, and others may treat a POA

Third parties can require identification and may have their own POA acceptance policies. Some institutions will accept any validly executed POA; others use a bank form or require the POA to include specific language. If a third party refuses to accept an agent’s authority, a court can order compliance.

Helpful Hints

Choose your agent carefully. Pick someone you trust, who is organized and willing to keep records.
Be specific. If you don’t want an agent to make gifts or sell the family home, say so in the document.
Consider a durable POA to avoid a guardianship or conservatorship if you become incapacitated.
Include successor agents so someone can step in if your primary agent cannot serve.
Talk to your banks and financial institutions early so you know what they require to accept a POA.
Keep accurate records and require your agent to provide periodic accountings to prevent disputes.
Review your POA every few years or after major life events (marriage, divorce, moving, changes in health or assets).
If your POA deals with real estate, check local recording requirements; some counties require additional steps to act on real property.
Consult an attorney if your financial situation is complex (business ownership, large investments, or anticipated Medicaid planning).

Where to find the law: The South Carolina Uniform Power of Attorney Act is codified at S.C. Code Ann. § 62‑5‑101 et seq.; you can read the text on the South Carolina Legislature’s website: https://www.scstatehouse.gov/code/t62c05.php.

Bottom line: A properly drafted and executed financial power of attorney in South Carolina can give an agent very broad authority to manage your finances and property if you cannot do so yourself. But the document must be carefully written to reflect your wishes, comply with formalities, and anticipate limits imposed by third parties and benefits programs.

Disclaimer: This article explains general legal principles under South Carolina law for educational purposes only. It is not legal advice and does not create an attorney‑client relationship. For advice about your specific situation, consult a licensed South Carolina attorney.