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4 ways someone could abuse Power of Attorney authority

On Behalf of | Feb 4, 2024 | Uncategorized

Power of Attorney (POA) is a legal instrument that grants someone the authority to make decisions on another person’s behalf. This authority can be broad or limited, covering financial, healthcare or other specified matters.

While it is a crucial tool for managing affairs, it’s important to be aware of potential misuse. If you’ve granted an agent(s) Power of Attorney, knowing how they may abuse their power and how to protect yourself is critical.

Financial exploitation

One common way Power of Attorney can be abused involves financial exploitation. Opportunistic agents may misuse funds, assets or property entrusted to them, leading to financial harm to the principal. Vigilance is crucial in detecting irregularities in financial transactions.

Medical decision manipulation

Abuse can extend to medical matters. Agents might make decisions that are not in the best interest of the principal’s health. This can involve neglecting necessary medical care or making choices contrary to the principal’s wishes. It is, therefore, essential to have clarity on the scope and limits of medical decision-making authority granted in a POA.

Property transfer shenanigans

Another potential abuse is improper handling of real estate and other properties. Agents may exploit their authority to transfer or sell assets without the principal’s knowledge or consent. Regular property audits and transparent communication can prevent such abuse.

Neglect of the principal’s well-being

In some cases, agents may neglect the overall well-being of the principal. This can involve inadequate living conditions, lack of proper healthcare or isolation from family and friends. Establishing clear expectations and communication channels is pivotal to help prevent such neglect.

While Power of Attorney authority is a powerful tool for managing affairs, it comes with potential risks. Understanding how abuse occurs and implementing protective measures can empower you to navigate this legal terrain safely. Always choose your attorney-in-fact wisely, engage legal counsel when necessary and stay vigilant to help ensure the agent works in your best interest.