Major Types and Indications of Power of Attorney Abuse!

Someone with power of attorney has the legal authority to sell a person's real property, open a lawsuit on his or her behalf, manage medical needs, and receive a certain income. So, power of attorney is a written document that gives the chosen person decision-making power in case the donor cannot make those decisions for any reason.

An experienced power of attorney lawyer in New Jersey can help the donor use this important tool in estate planning and prevent fraud. He will guide a donor and help to understand different types of power of attorneys before making the final decision.

Giving another person the power to manage your investments, your bank accounts, the day-to-day running of your business, the buying and selling of real estate, and the payment of your bills is a common reason for establishing a power of attorney (POA) over your property. But if you give someone power of attorney over your personal care, they can make choices on your behalf.

So, it's crucial to choose someone reliable who is well-prepared to fill this responsibly, whether temporarily or permanently. Although it is not necessary that you need to choose a lawyer as your power of attorney, you can also give this power to your spouse, relative, or friend.

In this post, you'll learn about how power of attorney can be abused, the different kinds of abuse, and some strategies for identifying fraud early.

So, How can someone misuse a power of attorney?

Being a POA entails significant responsibility for managing a donor's assets and making wise financial decisions. Your chosen person may sometimes counterfeit your signature or trick you into signing a continued power of attorney. Abuse of a POA can begin even before the documents are completed in some situations, and the problem worsens if the donor is unable to cancel it. A competent power of attorney lawyer can greatly help resolve any legal issues in the instance of POA abuse or fraud.

Types of power of attorney abuse-

Appointing the wrong power of attorney can result in significant financial loss, money theft, and asset transfer. A fraudster is skilled in manipulating financial institutions in order to gain profit from a donor's assets. POA can readily exploit logistical challenges and conduct financial operations to withdraw assets for personal use and transfer real estate to his or her name.

1. Elderly Fraud-

Several different sorts of damage can befall an older adult because of their vulnerability. Their power of attorney might empty their bank accounts, spend down their retirement money or their estate, or even break the law with their authorization.

The severity of the sanctions for elder fraud under state law varies. Therefore, involving a skilled POA lawyer who can assist you in filing a case against the abuser and recovering lost property, insurance payments, and other assets is crucial.

2. Breach of fiduciary duty-

A lawyer helps the donor to create a power of attorney contract, including certain authorities that abide by a set of rules, and it is expected from POA that he or she follows the rules to act with the utmost care and in the donor’s best interests. They must keep the donor informed about the financial details that affect him, take prior consent from the donor before acquiring any investment, and avoid transferring any funds or property in his or her name. However, if POA violates these duties and agreements, the donor can file a lawsuit based on a breach of fiduciary duty.

Significant indications of the power of attorney fraud-

Various hints about the power of attorney fraud can be;

• If there's a sudden activity in investment accounts or you notice amounts missing from bank accounts, this can be a significant sign of power of attorney fraud.
• POA seems to have more money or luxurious items like vehicles, jewelry, clothes, or even exotic holidays.
• Several valuable assets or cash started to go missing from home.
• POA breaks contact or every form of communication with a donor.

The bottom line!

If you notice any of these signs and suspect that POA is abusing his or her powers, you must seek legal help to challenge a power of attorney and put a stop to the abuse. A qualified and experienced power of attorney lawyer in New Jersey may help you in this situation and explain the matter clearly to provide the best possible assistance. They can present your case in court for criminal justice and try to minimize the damage.

Chaves Perlowitz Luftig LLP is a reputable law firm where you may speak with highly experienced attorneys who help customers comprehend the complete power of attorney procedure. You can consult with the top real estate planning attorney in NJ to learn about your legal choices and get advice on making them legally binding.

If you have any further queries, call them today at 212-791-3747 and get a free consultation!