Power of Attorney Abuse - Buyer Beware

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A power of attorney is used to delegate legal power to a different person. The principal (anyone granting the power of attorney) provides the agent, also known as the attorney-in-fact, the power to produce appropriate decisions on his/her behalf, including handling bank records, property, and other assets.

The possibility of fraud exists in every power of attorney arrangement, through self dealing, embezzlement, and illegitimate gifting. In some situations, a of attorney holder may considerably diminish a property, making the heirs of the key with minimum inheritance. Alternative methods in which a power of attorney can be abused contain changing beneficiary designations on life insurance or annuities, and opening bank accounts with joint name or pay on death conditions in favor of the agent.

The creation of a power of attorney may be questioned under the causes of lack of capacity or the creation did not follow proper procedures. Grounds may exist to sue the agent for the reunite of embezzled property or for monetary damages, If a validly given power of attorney is abused by the agent. If the principal is still living at the time of the motion, the principal can sue the agent directly. In many situations, the power of attorney abuse is part of a wider pattern of elder abuse. When the key has died from the time the power of attorney abuse has been found, the principal's estate or the intended beneficiaries of the house might be able to sue the agent for breach of fiduciary duty, tortious interference with estate planning, or several of other causes of action. To read additional info, consider having a view at: understandable.

As a result of potential for abuse using a power of attorney, their use must be limited. Many individuals developing a power of attorney will leave the device with the drafting attorney until the circumstances causing the activation of the power have already been induced, such as the inability of the principal.