What To Do if You've Been Given the Power of Attorney Over a Loved One

Eugene Strupinsky • February 11, 2026

Being granted power of attorney (POA) over a loved one is both an honor and a significant responsibility. This legal arrangement requires you to act in your loved one's best interests, particularly during times of incapacity. If you are in this role, it is important to understand not just the basics of POA, but also how you can use your authority effectively, especially when it comes to managing finances and property in New York. From complying with state statutes to ensuring proper financial management, every step you take should be aligned with your loved one's wishes and New York law.

What is Power of Attorney and What are Your Duties?

A power of attorney is a legal document that authorizes you, the agent, to act on behalf of the principal, or your loved one. This can cover a range of actions, such as managing real estate, handling financial accounts, or making healthcare decisions. In New York, a POA can be durable, meaning it remains in effect if your loved one becomes incapable, or nondurable, meaning it lapses in such cases.

As an agent, you are required to:

Act honestly, with care, and in your loved one's best interest
Maintain thorough records of all actions and transactions
Avoid conflicts of interest or personal gain from the arrangement
Follow any instructions given in the POA document

Key First Steps After Accepting Power of Attorney

After being named as POA, your first actions should involve:

Reading the POA document in detail to determine the extent and limits of your authority
Notifying financial institutions and other relevant parties of your new role
Keeping all important documents secure, such as the original POA, identification, and any court filings
Consulting with a reputable law firm for tailored guidance to ensure compliance with New York State law

Transparency is crucial. In Brooklyn and throughout New York City, mismanagement or failure to follow the rules can result in legal consequences.

Managing Assets, Accounts, and Real Estate

If your loved one owns property or has substantial assets, you might need to make decisions about real estate or investments. For those handling commercial or residential properties, understanding the full scope of your powers is essential. For example, to sell, rent, or transfer real estate, New York law often requires that the POA document specifically grants such authority. You may need to coordinate with real estate professionals and accountants, and you may also need to address seasonal challenges unique to New York, like winter property maintenance or compliance with local housing codes.

Tax Strategies and Financial Transactions: 1031 Exchange Overview

If your power of attorney involves managing real estate investments, you might encounter opportunities for a 1031 exchange. This is a legal process allowing property owners to defer capital gains taxes when swapping one investment property for another. It is particularly beneficial for commercial investors in areas like Brooklyn, where property values and investment opportunities shift seasonally.

A 1031 exchange offers the following tax advantages:

Defers capital gains taxes, preserving more capital for reinvestment
Allows for portfolio growth without immediate tax burden
Helps with estate and succession planning

Eligibility for a 1031 exchange requires that both properties be held for investment or business purposes and be "like-kind." The timeline is strict: after selling the first property, you have 45 days to identify potential replacements and 180 days to complete the transaction. Be sure to keep accurate records and consult with qualified professionals to help navigate these legal and tax issues.

When to Consult Legal Professionals in Your Role as POA

Given the complexity of laws and responsibilities in New York, being proactive about seeking legal counsel is always in your loved one's best interest. Whether you are unsure about your powers, need help with property transactions, or face a dispute, trust and estate administration or elder law attorneys can provide solutions tailored to your specific circumstances. This is especially important in a highly regulated, diverse city like New York.

Contact Khalifeh & Strupinsky, P.C. for Power of Attorney Guidance in Brooklyn and New York, NY

If you have been granted power of attorney and need reliable legal advice, Khalifeh & Strupinsky, P.C. is here to help. Our team is well-versed in New York State's complex POA regulations, offering comprehensive services in estate planning and related legal matters. To schedule a confidential consultation, call us at 917-717-5007 or fill out the secure online form. Let us help you navigate your new role with confidence and clarity.

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Are Communications with AI Privileged?: Judge Rakoff delivers opinion in United States v. Heppner

By Kayla Gaisi • March 10, 2026

As generative AI becomes increasingly integrated into our daily lives, it continues to raise legal questions that courts can no longer ignore. This month, the question of whether communications between criminal defendants and public AI are protected from government inspection was answered by Judge Jed Rakoff. That answer was an unequivocal 'no.' In the case at hand, defendant Bradely Heppner was charged with fraud and arrested a month later, in November 2025. When the FBI executed a search warrant at his home, they seized documents containing communications between him and the public AI platform Claude AI. According to Heppner's counsel, these communications reflected a defense strategy Heppner had generated in anticipation of potential indictment. Heppner asserted that these documents were either protected under attorney-client privilege or by the work product doctrine, arguing that he had used Claude for the purpose of obtaining legal advice and had shared these outputs with his attorneys. However, Judge Rakoff rejected both arguments. Attorney-client privilege applies only to communications between a client and a professional who owes them fiduciary duties and is subject to discipline. It is a socially valuable human relationship. Regardless of how advanced an AI systems is, it cannot meet this definition. Claude is not a human attorney and does not have an attorney-client relationship with its users, so communications with it cannot qualify for attorney-client privilege. Aside from this, Rakoff listed other reasons why Heppner's communications with Claude are not considered confidential. Firstly, Claude is a public AI system whose privacy policy discloses that communications can be shared with third parties including "governmental regulatory authorities." Secondly, as his counsel admitted, Heppner sought legal advice from Claude on his own volition, not at their direction. Even if Heppner received legal advice and later shared that with his counsel, that does not render the initially unprivileged communication privileged. The related work product doctrine fared no better for Heppner. This doctrine protects materials prepared by attorneys in anticipation of litigation from discovery by opposing parties. Here, the AI-generated documents were not prepared by or at the behest of counsel and did not reflect counsel's strategy. Thus, they fell outside the scope of the doctrine. Judge Rakoff's ruling matters because it maintains the narrowness of evidentiary privileges that is necessary for protecting the judicial system's truth-seeking function. Extending privilege to communications with public AI systems could create a dangerous loophoole, one where parties could shield discoverable information by filtering it through a chatbot. But given Rakoff's ruling, the main takeaway here is that attorneys should explicitly advise their clients not to share personal or legal information with public AI systems. Despite how routine it has now become for many to ask public AI personal questions, these communications are not confidential, and may ultimately be used as evidence in court.