Power of Attorney Abuse - Buyer Beware

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Power of Attorney Abuse - Buyer Beware

A power of attorney is employed to assign legal authority to a different person. The principal (the person giving the power of attorney) gives the agent, also called the attorney-in-fact, the power to make appropriate decisions on his/her behalf, including handling bank records, property, and other assets.

The possibility of fraud exists in every power of attorney agreement, through illegitimate gifting, and home working, embezzlement. In certain circumstances, an estate will be significantly depleted by a power attorney holder, leaving the heirs of the principal with little or no inheritance. Other ways in which a power of attorney may be abused include changing beneficiary designations on life insurance or annuities, and opening bank accounts with combined title or pay on death conditions in support of the agent.

The creation of a power of attorney could be questioned under the grounds of insufficient ability or the creation didn't follow proper formalities. Grounds might exist to sue the agent for the return of embezzled home or for monetary damages, If a validly given power of attorney continues to be abused by the agent. The agent can be sued by the principal directly, if the principal remains living at the time of the motion. In several circumstances, the energy of attorney abuse is part of a larger pattern of elder abuse. If the key has passed away by the time the energy of attorney punishment has been discovered, the principal's estate or the intended beneficiaries of the home could be able to sue the agent for breach of fiduciary duty, tortious interference with estate planning, or several of other causes of action. Identify more about powered by by navigating to our dazzling URL.

As a result of potential for 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 conditions initiating the activation of the power have already been induced, such as the incapacity of the key..Bennett & Belfort, P.C.
24 Thorndike Street, Suite 300
Cambridge, MA 02141
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F. 617-577-8811