Abuse of Power of Attorney After Death and Its Consequences

When it comes to our finances and legal affairs, most of us prefer to have some control over them. That’s why power of attorney (POA) is such a common tool in the modern world. 

With POA, you can appoint someone you trust—usually a lawyer or family member—to manage your financial and legal matters on your behalf. It’s a great way to have peace of mind knowing that someone has your back should you become incapacitated or pass away. 

But while POA is a useful instrument, it can also be abused after death. In this article, we’ll delve into the ramifications of taking advantage of a power of attorney after someone has died and the effects that can manifest from such misuse.

What Is Abuse of Power of Attorney After Death?

Abuse of power of attorney after death occurs when someone appointed to act on behalf of the deceased person misuses their authority. 

This can include anything from misappropriating assets to taking part in fraudulent activity, such as forging documents or signing contracts without proper authorization. In any case, the result is that the deceased person’s wishes are disregarded, and their estate is not adequately protected. 

Unfortunately, this kind of fraudulent activity can happen all too easily, especially if the deceased person did not have a detailed will or estate plan in place. 

Even if they did, POA abuse can still occur if the proper precautions are not taken. Knowing how fraudulent activities operate and what measures you can take to protect yourself is of paramount importance.

Common Types of Abuse

Some common types of abuse of power of attorney after death include: 

Misappropriation of Assets

This is when someone appointed to handle the deceased person’s affairs uses their authority to take assets for their own benefit. 

Fraudulent Activity

This can include forging signatures, creating false documents, or signing contracts without authorization. 

Unauthorized Transactions

This can involve selling off valuable property without permission or making unauthorized investments. 

Gifting Assets

This is when someone appointed to handle the deceased person’s affairs gives away assets without permission or proper legal authority.

Some forms of abuse may not be immediately obvious and can take a while to detect. It’s important to keep an eye on your POA’s activities so that you can take swift action if any suspicious activity occurs. 

Knowing the potential risks of POA abuse after death can help ensure that your wishes are followed and your estate is protected. 

Now let’s take a look at the consequences of POA abuse after death. 

Consequences of Power of Attorney Abuse After Death

When it comes to the consequences of power of attorney abuse after death, there can be both legal and financial repercussions.

Legal Consequences

For starters, anyone found guilty of POA abuse after death may face civil or criminal charges. Possible repercussions for breaking the law include hefty fines, jail time, or a combination of both.

In addition, the court may also order restitution for any damages or losses incurred as a result of the fraud. This means that the person responsible for the abuse may be required to pay back any assets they misappropriated or reimburse any victims who lost money due to their actions. 

Financial Consequences

The estate of the deceased can also suffer as a result of POA abuse after death. Without proper protection, assets may be depleted or distributed incorrectly. This could lead to delays in the distribution of an estate or even a complete depletion of its assets. 

In some cases, it can also leave heirs or beneficiaries out of pocket if they had been expecting to receive a certain inheritance. 

How to Prevent Abuse of Power of Attorney After Death

Fortunately, there are steps you can take to protect your estate from POA abuse after death. Here are some tips for setting up a power of attorney agreement and monitoring its use: 

Choose a Trustworthy Agent

The first step is to choose an agent that you can trust and make sure they understand the responsibilities involved. Ask questions about their experience and make sure they are familiar with all relevant laws. 

Outline Clear Expectations

Be clear about your expectations in the agreement, such as details on how the agent should handle assets and manage finances. Make sure that all procedures outlined in the agreement follow the law and are consistent with your wishes. 

Monitor Use After Death

It’s important to monitor the use of power of attorney after you pass away. You can do this by hiring an estate planning attorney or accountant to review financial statements on a regular basis. This will ensure that your POA is acting in accordance with the agreement and not taking any unauthorized actions. 

If you’re worried about POA abuse after death, you can also set up a trust or appoint an independent fiduciary to manage your estate. This will help protect against any potential fraud or mismanagement of assets. 

By taking the necessary steps to prevent POA abuse after death, you can ensure that your wishes are followed, and your estate is protected.

Meet with an Experienced Estate Planning Attorney

If you have any questions or concerns about power of attorney abuse after death, it’s important to seek legal advice. An experienced estate planning attorney can help you set up the necessary documents and explain your rights and responsibilities. 

They can also advise on how best to protect your estate from fraudulent activity or mismanagement of assets. When you follow these actions, you can be assured that your estate is properly managed and distributed according to your wishes. Rest easy knowing that everything will go as planned.

No matter how careful you are, POA abuse after death can still occur. That’s why it’s so important to maintain a vigilant eye over your finances and take action if any suspicious activity occurs. Knowing the potential risks and taking the necessary steps to prevent them will help keep your assets safe and your wishes respected. 

To ensure your rights and wishes are protected, get in touch with Doane & Doane at 561-656-0200. Our experienced estate planning attorneys can help you set up a power of attorney agreement and provide guidance on how to prevent any potential abuse after your death. Act now to learn more, or schedule a meeting with us today!

Note -The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.