My husband was his dad's POA up until a few days ago when we discovered a new one was put in place. He decided to not fight it and let the person take it. The issue is that he is fearful that these people are going to go through the financials and accuse him of doing things incorrectly. My husband isn't the most savvy and paid for a lot of things in cash. What are the consequences of this? What if the accounts were all accounted for in the end, will there be any issues? Probably just overthinking but this whole thing has been a nightmare.
As Mom's POA, I usually write checks or charge items, easier for recordkeeping purposes - very little cash used for minor incidentals.
If they have an indication that the most of the money was pocketed by the agent I doubt they would pursue your hubby.
https://www.elderlawanswers.com/revoking-a-power-of-attorney-7312
While I also wouldn't worry until I've been notified, he could start by tallying up what he can recall for bills and withdrawals (bank statements would show how much cash was taken out.) If need be, contact the billers and either request replacement bills for a year or have it read out and document it.
Until/unless the POA is properly revoked, it isn't.
However, paying in cash was likely a bad idea. It should be simple enough to show expenditures (if bills and statements were tossed, it may require asking for previous ones from the billers/bankers) more or less match the withdrawals. If he was buying supplies and groceries with cash, a reasonable guesstimate should work. So long as the tally shows reasonable usage, again, I wouldn't worry too much. What would really raise flags is large withdrawals or too many smaller withdrawals.
The biggest concern would happen if he ever needs Medicaid and your husband's stint was within the last 5 years prior to application. THEN you really need to have accounting for all that was spent. Certainly a new POA can question him about what he spent the money on, but worry about it if/when it happens.
I will say that 2 of us were appointed POAs for mom many years ago. It wasn't until about 6 years ago that I had to use mine. YB never used his. While I haven't kept "records", I do have all the bills and bank statements. There are receipts for certain supplies that were kept separate, for tax purposes. For the most part, any supplies, food, bill payments, some medications, etc were paid with a debit card associated with her account, so these are documented. Would it prove everything purchased was hers? No, but at least they can help track. Some things were paid with online bill payer or by check: various utilities, MC rent, condo fees, atty fees, taxes, hair cuts, other medications, etc. The only thing I recall using cash for was a tip for the hairdresser.
In general, I rarely use cash myself - it's too easy to misplace it or sometimes to even backtrack and figure out where it all went! With bill payer and credit card, I know what I've spent and where and can use the monthly figures to est future costs!
Lesson learned - if there's a next time, do it right!
It is always very sad when someone takes on POA without understanding that you are a LEGAL FIDUCIARY and responsible to account for all spending of the elder's assets, and to have records, receipts, folders for payments out and assets in.
There isn't any sense to worrying about this NOW, but do form a sort of file for keeping any records of accounts and etc. that you do have.
Ignorance is no excuse under the law. If anything comes up simply say that you were never aware that record keeping was a part of your duties, that bills were paid as they came, that there is little you can do now to account for whatever they were, but that the new POA can look up what bills (taxs, phone, utilities, whatever) may exist.
It is unlikely that any action will be taken. Be as cooperative and non-defensive as you can be. Hope for the best.
Your message here is good to serve as a reminder that those taking on POA should understand what they are doing, their duties and their obligations under the law even if they have to go to an Elder Law Attorney to do that. And that they must keep meticulous records to protect themselves from just what you have ended worrying over. I wish you good luck.