Power of Attorney Abuse - Buyer Beware

A power of attorney is used to delegate legal authority to an additional individual. Connecticut Real Estate Attorney Lawyer New Haven Civil Litigation CT Hartford Coun real estate lawyer. The principal (the person granting the power of lawyer) provides the agent, also known as the lawyer-in-fact, the authority to make legal choices on his/her behalf, like handling bank accounts, real estate, and other assets.

The potential for fraud exists in every power of attorney arrangement, through self dealing, embezzlement, and unlawful gifting. In some situations, a power of attorney holder will considerably deplete an estate, leaving the heirs of the principal with little or no inheritance. Connecticut Real Estate Attorney Lawyer New Haven Civil Litigation CT Hartford Coun title insurance new haven ct. Other methods in which a power of lawyer can be abused consist of changing beneficiary designations on life insurance or annuities, and opening bank accounts with joint title or spend on death provisions in favor of the agent.

The creation of a power of attorney can be challenged under the grounds of lack of capacity or that the creation did not follow proper formalities. If a validly granted power of attorney has been abused by the agent, grounds might exist to sue the agent for the return of embezzled house or for monetary damages. If the principal is still living at the time of the action, the principal can sue the agent directly. In numerous circumstances, the power of attorney abuse is part of a broader pattern of elder abuse. If the principal has passed away by the time the power of lawyer abuse has been discovered, the principal's estate or the intended beneficiaries of the house might be in a position to sue the agent for breach of fiduciary duty, tortious interference with estate arranging, or a quantity of other causes of action.

Due to the possible for abuse with a power of attorney, their use should be limited. Connecticut Real Estate Attorney Lawyer New Haven Civil Litigation CT Hartford Coun real estate lawyer new canaan. A lot of persons developing a power of attorney will leave the instrument with the drafting lawyer until the conditions triggering the activation of the power have been triggered, such as the incapacity of the principal.