Power of Attorney Abuse - Buyer Beware

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Power of Attorney Abuse - Buyer Beware

A power of attorney is used to assign legal authority to another person. The key (the person granting the power of attorney) gives the agent, also known as the attorney-in-fact, the authority to make appropriate decisions on his/her behalf, including handling bank records, property, and other assets.

The prospect of fraud exists in every power of attorney agreement, through self working, embezzlement, and unlawful gifting. In a few situations, an estate will be significantly depleted by a power attorney holder, making the heirs of the key with little or no inheritance. Different ways where a power of attorney could be abused contain changing beneficiary designations on life insurance or annuities, and opening bank accounts with joint title or pay on death terms in favor of the agent.

The creation of the power of attorney can be questioned under the grounds of insufficient capacity or the creation did not follow proper procedures. If a validly granted power of attorney continues to be abused from the agent, reasons may exist to sue the agent for the get back of embezzled property or for monetary damages. If the principal is still living at the time of the action, the principal can sue the agent immediately. Visiting powered by seemingly provides suggestions you should give to your father. In many situations, the power of attorney abuse is part of a broader sample of elder abuse. If the principal has died from the time the power of attorney abuse has been discovered, the principal's estate or the intended beneficiaries of the property may be able to sue the agent for breach of fiduciary duty, tortious interference with estate planning, or a number of other causes of action.

As a result of possibility of abuse using a power of attorney, their use must be limited. The instrument will be left by many persons creating a power of attorney with the drafting attorney until the circumstances triggering the activation of the power have been induced, such as for instance the incapacity of the primary..Bennett & Belfort, P.C.
24 Thorndike Street, Suite 300
Cambridge, MA 02141
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