Power of Attorney Abuse - Buyer Beware

A power of attorney can be used to assign legal power to another person. The principal (the individual giving the power of attorney) gives the agent, also referred to as the attorney-in-fact, the authority to produce appropriate decisions on his/her behalf, including property, handling bank records, and other assets.

The possibility of fraud exists in most power of attorney agreement, through self dealing, embezzlement, and illegal gifting. In certain situations, an estate will be significantly depleted by a power attorney holder, leaving the heirs of the key with minimum inheritance. Alternative methods when a power of attorney can be abused contain changing beneficiary designations on life insurance or annuities, and opening bank accounts with combined title or pay on death terms in support of the agent.

The creation of the power of attorney may be pushed under the lands of insufficient ability or the creation didn't follow proper procedures. Reasons may possibly exist to sue the agent for the return of embezzled home or for monetary damages, In case a validly given power of attorney is abused by the agent. If the principal continues to be living at the time of the action, the agent can be sued by the principal directly. Http://Markets.Financialcontent.Com/Wral/News/Read/38287733/The Gordon Law is a engaging online library for more concerning where to engage in this enterprise. In many situations, the power of attorney abuse is part of a broader sample of elder abuse. If you have an opinion about religion, you will maybe fancy to research about http://www.digitaljournal.com/pr/4311619. When the key has passed away by the time the power of attorney abuse has been identified, the principal's estate or the intended beneficiaries of the house could be able to sue the agent for breach of fiduciary duty, tortious interference with estate planning, or several of other causes of action.

Because of the potential for abuse using a power of attorney, their use should be limited. The instrument will be left by many persons creating a power of attorney with the drafting attorney until the circumstances initiating the activation of the power have been induced, such as the incapacity of the key..