27 Nov What Happens If Someone Abuses Their Role As Power of Attorney?
What Happens If Someone Abuses Their Role As Power of Attorney?
When someone takes on the responsibility of power of attorney, their job is to act in the best interests of the person who assigned them that role. But unfortunately, that’s not always what happens. Abuse of power can show up slowly, in many unexpected ways. That’s why it’s important to know what to look for and what you can do to prevent it.
Types of Power of Attorney
When you sign a power of attorney (POA) you are giving someone else permission to make decisions and act on your behalf. These agreements are legally binding, and your agent or “proxy” is obligated to act in your best interest. A power of attorney can apply to one specific situation (like transacting the sale of a house) or cover a broader scope, such as making healthcare decisions.
There are several types of power of attorney agreements:
- Medical – Makes healthcare and treatment decisions
- Financial – Manages money, bills, and property
- General – Covers most legal and financial matters
- Limited – Used for a specific purpose or a short period of time
- Durable – Stays valid even if the person becomes incapacitated
- Parental – Gives another adult temporary authority over a child
Each type gives a different level of control, so it’s important to choose the right document and be as specific as possible as to what is allowed. Appointing a power of attorney does not automatically give that person full control. You get to decide what they can and can’t do, and if they break the terms of the agreement, they can be held responsible.
Why Would Someone Abuse Their Power of Attorney?
Sadly, the most common reason for abusing power is personal gain. The agent may make unauthorized withdrawals, sell property, or use credit cards that don’t belong to them. Others use their influence to isolate the principal from family and friends so they can push for changes to their will or take more control.
Take Janine, for example. Her brother, Greg, was the POA for their mother. Months before their mother passed, Janine noticed Greg had made several expensive and unexplained purchases. She also had a hard time contacting her mother: she was always out or unavailable when Janine would call or stop by. After their mother passed, Janine learned that she was no longer mentioned in her mother’s will, and Greg was left with everything.
Sadly, stories like Janine’s happen more often than you think. It can be easy for one person to quietly take advantage of family members who trust them to handle their estate properly.
Signs That Someone Is Misusing Their Power of Attorney
Not every abuse of POA privilege looks the same. For example, it can include:
- Changing titles or pressuring the principal to change their will
- Selling off valuable assets
- Neglecting their duties or delaying important decisions
- Mixing personal money with the principal’s assets
- Using the principal’s credit cards on purchases for themselves
Here are a few red flags that should raise concern:
- The agent suddenly starts showing off new purchases.
- They refuse to share details about the principal’s accounts.
- They isolate the principal from family and friends, making it hard for them to reach out.
- Bills go unpaid, or care is neglected.
- The agent’s behavior suddenly changes or becomes secretive.
How to Challenge a Power of Attorney
If you suspect abuse, you can challenge a POA designation in court as a concerned third party. However, the burden of proof will rest on you. That means it’s up to you to gather enough evidence to prove the agent is misusing funds or taking advantage of their privileges. Contacting a lawyer who specializes in personal injury or elder abuse is the best way to figure out your next steps.
If you are the principal, and you suspect that your agent is not putting your interests first, it’s always possible to change your power of attorney. By revoking the existing documents you can regain full control.
Protect Yourself and Your Estate
No one ever expects to deal with a situation like this. But the good news is, you have options.
Remember, your power of attorney agent only has as much power as you give them. No matter how much you trust someone, it never hurts to set limits. The more specific you are in the terms of your agreement, the harder it will be for your agent to take advantage of you.
At Phelps LaClair, we try to help our clients plan for every possibility. A power of attorney can be an excellent way to protect your assets and your personal interests, but it only works when it’s set up correctly. If you’d like to get the opinion of an estate planning expert, contact us today to schedule a consultation.
Images used under creative commons license – commercial use (11/21/2025). Photo by Kampus Production on Pexels