By Kim Boyer
Elder Law News
April 2003
As the use of durable powers of attorney have grown more widespread, reports of abuses by agents have grown dramatically. A “durable” power of attorney is one that survives the disability of the principal.
Most people cannot imagine that the person they have chosen as agent, often a family member, could possibly misuse assets. Adult protective services workers, public guardians, and prosecutors can tell you how frequently individuals, including family, abuse the authority given to them under a power of attorney. Just when the principal is most vulnerable, the agent has unfettered access to assets and the access is usually unmonitored.
You must balance the risk of an agent misbehaving with the risk of not having a power of attorney. If no planning is done, a guardianship may be necessary, which can be cumbersome and costly.
If you do execute a power of attorney for assets, you should take great care in selecting the agent and name a completely trustworthy person. You can also consider naming more than one person as agent and require them to act together. This provides a system of checks and balances, and can avoid showing preference for one family member over another. Consult an experienced attorney to prepare the document.
