Are you concerned about someone else who has recently started helping an elderly loved one manage their finances? You’re not alone. Growing concerns over elder financial abuse are common across the country, especially as it relates to power of attorney abuse.
A power of attorney is a document that allows someone else to make financial decisions or actions on your behalf. Unfortunately, elderly people may be more vulnerable to signing over powers of attorney to untrustworthy friends, family members or caregivers, and anyone else who may not need to have such powers.
Some states have taken proactive steps to write financial power of attorney laws designed to further educate elderly individuals about their rights and to cut down on the cases of fraud and abuse that occur. If you are a family member of an elderly loved one who has given financial power of attorney to someone else, you may need to watch for warning signs of potential fraud.
A power of attorney agent is legally obligated as a fiduciary to act only on behalf of the person they’re representing. But in many cases, no one is watching, which means that a dubious person could be taking negative actions that harm your loved one. If your loved one has no sense of their financial situation, is making significant financial transfers that don’t seem to make sense, or seems stressed out or unduly influenced by another person, you may need to be concerned about a financial power of attorney abuse situation.
Your ability to catch these signs early could help stop the depletion of your loved one’s financial assets. Having a solid estate plan with a financial power of attorney agent who is trusted can help to eliminate these problems. Talk to our Pasadena estate planning law firm about creating or revoking an existing power of attorney to ensure that you have someone you trust in place for these important decisions.
