As an agent under a Texas durable power of attorney, you may manage another person’s money, property, and financial decisions. In that role, you are a fiduciary, meaning you must act in the best interests of the principal, or the person who gave you authority. Under Chapter 751 of the Texas Estates Code, you must maintain records of each action you take or decision you make as an agent.
Keeping records organized can make it easier to explain how you managed the principal’s affairs. Consider saving these five types of records:
1. Receipts and invoices
Keep receipts, invoices, and canceled checks for expenses you pay with the principal’s funds. These records can show where the money went and why you spent it.
2. Account statements
Save bank, investment account, and credit card statements for accounts you manage. They can help document deposits, withdrawals, transfers, and balances. Keeping the principal’s financial activity separate from your own can also make transactions easier to document and explain.
3. Income records
Keep records of money received for the principal, such as Social Security benefits, pension payments, investment income, or rental payments.
4. Property and tax documents
Deeds, tax filings, appraisal records, and documents involving major property purchases, sales, or transfers can help show how you handled the principal’s property.
5. Records of important decisions
Keep notes and supporting documents for significant financial decisions, such as selling property, moving money between accounts, or paying a large expense on the principal’s behalf. These records can help explain what you did and why.
State law also recognizes electronic records if they can be retrieved and read or viewed later. Keeping backup copies can help prevent important information from being lost.
Keep records throughout your time as an agent
Under state law, you must keep your records until you deliver them to the principal, the principal releases you from that duty, or a court discharges you from the duty.
The principal may also demand an accounting, or a detailed report of how you handled their money and property. You generally have 60 days after the demand to provide the required information, although the principal may demand a longer or shorter period or a court may order one.
Keeping records as you act can make an accounting easier later. If you are unsure about your recordkeeping responsibilities, accounting requirements, or what you are allowed to do, legal guidance can help you understand the document and Texas law before questions or disputes arise.
