A Power of Attorney is a legal document that allows an individual (the principal) to appoint another person (the attorney) to make decisions relating to financial matters, property and healthcare if the principal becomes incapable of doing so.
However, this power can be abused, resulting in the attorney acting in ways contrary to the principal’s best interest. Here are 3 key signs that may suggest an attorney is abusing their power:
- Unexplained Transactions: if there are a number of transactions which do not align with the principal’s normal spending habits, this may suggest that the attorney is mismanaging the principal’s funds and using it for their own benefit
- Unfulfilled Responsibilities: if the attorney neglects the needs of the principal, such as by failing to provide necessities like food or medication, it may suggest that the principal is being neglected and the attorney's attention is focused elsewhere
- Limited Communication: if the attorney limits their communication with the principal and their family members, it may suggest that they are concealing information and instead, are choosing to undertake their own course of action
So, how can Power of Attorney abuse be prevented?
- Choose a Trusted Individual: it is valuable to choose an individual with integrity and transparency so they have the principal’s best interests at heart and will not abuse the power granted to them
- Impose Appropriate Limits on Their Power: principals can choose to impose limits on the decisions which their attorney can make, such as only allowing them to make decisions relating to the principal's healthcare
- Seek Legal Advice: seeking professional legal advice can be crucial in ensuring that the Power of Attorney document reflects the principal’s best interests, and legal professionals can identify areas where issues may arise in the future and accordingly, provide solutions
If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.