Abuse of Power of Attorney - Can it Be Prevented?
Another example of alleged abuse by an agent under a power of attorney. The Denver Post reports a man is accused of using his grandmother's money for his personal use and now she is out of money. The grandson and his wife are facing criminal charges.
Could this have been avoided? People want to trust their family, so it can be hard to prevent this type of abuse. One thing may be to require in the power of attorney document that the agent has to provide an accounting to a third party. Will this be like shutting the barn door after the horses have left? Maybe, because accountings are always historical. The money has already been spent.
Yet, if the agent knows he will have someone checking into how he spent the money he may resist temptation to use grandma's money for his own car payment.
Posted by Karen Brady at 6/8/2012 7:48 AM 
Categories: Probate, Conservatorship, Estate Planning, Guardianship
Tags: power of attorney agent abuse of power of attorney abuse by agent prevent power of attorney abuse
Categories: Probate, Conservatorship, Estate Planning, Guardianship
Tags: power of attorney agent abuse of power of attorney abuse by agent prevent power of attorney abuse
First and foremost do not use a Power of Attorney unless you absolutely need one. If you need a power of attorney have one prepared but do not sign it until you actually need it. Make sure there is an expiration date on the power of attorney, usually for a short period of time and never longer than 2 years.
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James,
I strongly disagree. When you NEED a power of attorney is when you are incapacitated and can't sign it. That's why we call it planning. And expiration dates are not wise, either. If you are sick for longer than two years, then what -- force a court proceeding? If you are only sick for one year then when you get better you can always revoke the power of attorney.
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