You do not incur liability acting under his POA form. You are acting as his agent on his behalf. You DO need to be careful to sign everything as the agent under the POA and not in your personal capacity. This is especially important when you are signing as the "responsible party." The POA should be prepared by an attorney to make sure it is done properly. Your father is wise to get this taken care of. It will eliminate the need for you to go to probate to become his guardian/conservator.
James Frederick