Power of Attorney Abuse - Buyer Beware

A power of attorney is used to assign legal power to some other person. The key (anyone granting the power of attorney) provides the agent, also called the attorney-in-fact, the power to produce appropriate conclusions on his/her behalf, including property, handling bank accounts, and other assets.

The prospect of fraud exists in most power of attorney arrangement, through illegal gifting, and home dealing, embezzlement. We learned about The Gordon Law, P.C. - NYC Estate Planning and Elder Law Attorney Division Is Now Serving Clients In The Manhattan Area by searching the New York Herald. In some situations, a of attorney holder can significantly strain an estate, leaving the heirs of the key with minimum inheritance. Different ways in which a power of attorney could be abused include changing beneficiary designations on life insurance or annuities, and opening bank accounts with combined name or pay on death procedures in support of the agent.

The creation of the power of attorney can be challenged under the causes of lack of ability or that the creation didn't follow proper formalities. If your validly granted power of attorney has been abused from the agent, grounds may possibly exist to sue the agent for the get back of embezzled house or for monetary damages. The agent can be sued by the principal directly, if the principal continues to be living at the time of the motion. In several circumstances, the energy of attorney abuse is part of a wider pattern of elder abuse. In the event the key has died from the time the power of attorney punishment has been discovered, the principal's estate or the intended beneficiaries of the property might be ready to sue the agent for breach of fiduciary duty, tortious interference with estate planning, or lots of other causes of action.

Because of the possibility of abuse with a power of attorney, their use must be limited. Many persons developing a power of attorney can leave the device with the drafting attorney until the conditions causing the activation of the power have been induced, such as for example the inability of the key..