How to become a confident financial caregiver

We almost all seem to know someone who helps older family members with financial affairs. If legally appointed to help someone with their money, find out all you can about the potentially confusing role.

To help fledgling financial caregivers, the Federal Consumer Financial Protection Bureau (CFPB) publishes four guides for "Managing Someone Else's Money." Each guide addresses a specific role:

• agents under a power of attorney;
• court-appointed guardians or conservators who oversee another's daily life;
• trustees in charge of living trusts; and
• government agency appointees to manage Social Security or veterans' benefits.

Each guide aims to walk you the caregiver through your duties; tell you how to watch for scams and financial exploitation and what to do if your family member becomes a victim; and show where you can turn for additional help.

The first guide helps if you're named an agent under a power of attorney, a document giving you the legal right to act for another. It spells out how you must act in the subject's best interest, carefully and separately managing his or her property and money and what you can and cannot do as an agent (or fiduciary). The publication also includes problem-solving tips and resources for you to find more information.

As you may not even realize when someone wants to give you power of attorney, the guide gives a clear example for a hypothetical elderly person named Martina:

"Your family member or friend is worried that she will get sick and will not be able to pay her bills or make other decisions about her savings and house. (She) has signed a legal document called a power of attorney. In it, she names you as her agent and gives you the power to make decisions about money and property for her. The law gives you a lot of responsibility as Martina's agent under a power of attorney."

The "Managing" series pulls few punches. "As a fiduciary," each guide reads, "you must be trustworthy, honest, and act in good faith. If you do not meet these standards, you could be removed as a fiduciary, sued or have to repay money. It is even possible that the police or sheriff could investigate you and you could go to jail. That's why it's always important to remember: It's not your money!"

Note: These guides work for family and friends serving in fiduciary roles, not for professionals or organizations. The first guide does not cover how to draw up a power of attorney and gives no legal advice; laws vary state to state so you may face additional duties. Talk to an estate lawyer if you have questions.

The second guide, for court-appointed conservators and guardians of property, also covers your responsibilities and restrictions, is not intended for professionals or organizations and gives an example of when you find yourself in the specified role:

"Your family member or friend may not be able to make decisions on his own about his money and property. After a hearing, the court has named you guardian of (his) property … You now have the duty and power to make decisions on (his) behalf about some or all of his money and property."

This guide also plainly addresses the potential contention of the role you assume: "Don't expect others to know what a guardian of property is or does. They may not understand that you have been appointed by the court. They may think you have more authority or less authority than you really have."

Dan Crimmins is the co-founder of Crimmins Wealth Management in Woodcliff Lake, N.J., and is a member of the AdviceIQ Financial Advisors Network, which is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.