When an individual abuses or misuses their responsibilities granted under a power of attorney, it could lead to many tough issues and conversations between loved ones that might require legal assistance. Fortunately, there are indicators and common actions that could be useful in identifying potential power of attorney abuse. A skilled power of attorney lawyer in New Jersey could help identify any wrongdoing and work to rectify the situation.
Allowing an individual to be responsible for another person’s major life decisions can be both an important and difficult choice. The hope is that when an individual is chosen to handle major decisions in another person’s life, they will have their best interests in mind. Unfortunately, this is not always the case.
What is a New Jersey Power of Attorney Document?
A power of attorney document is a powerful tool that grants someone the authority to act on behalf of another person. In a power of attorney relationship, the person granted with the decision-making power is typically called the agent, and the person who grants another person the decision-making power is typically called the principal. The legal authority granted in a power of attorney document can be a crucial planning tool for individuals who are temporarily or permanently disabled or unable to make decisions for themselves.
The decisions made by an agent, on behalf of the principal, often relate to the principal’s finances; however, a power of attorney document could also grant an agent the authority to make decisions on a principal’s health care. Under New Jersey law, any agent with the power to make financial or medical decisions for principals must act with the principals’ best interests in mind. A New Jersey lawyer dedicated to power of attorney law could help ensure an agent acts for the betterment of the principal and work to uncover any misuse of the powers granted to an agent.
3 Common Signs of Power of Attorney Abuse in New Jersey
When significant power and authority over an individual’s life is granted to another person, there is always a chance for them to abuse such power and authority. In some circumstances, an agent of a power of attorney might not understand that they are failing to comply with their responsibilities; however, in other situations, they might be committing deliberate acts of abuse or misuse of their powers granted under the power of attorney document.
Fortunately, there are a few common types and signs of power of attorney abuse that could make identifying such misuse easier.
Conversion of Finances
Stealing money or other assets is one of the most common ways that an agent misuses a power of attorney. This can involve an agent transferring money from the principal’s account to their own or using a principal’s funds to buy things for themselves or pay their own bills.
Some of the common identifiers of mismanaging or stealing finances include the agent adding his or her name to the principal’s account or making decisions about assets, such as real estate, that are not necessary. Another common indicator of abuse of financial decision-making power is agents giving themselves several financial gifts.
Breach of Fiduciary Duties
Additionally, a failure by the agent to uphold the fiduciary duties owed to the principal could signal power of attorney abuse. Agents must maintain records of all financial transactions or decisions made under the power of attorney. When records cannot be found or do not align with the
transactions, this could be a clear indicator that some type of misuse may be occurring.
Furthermore, if an agent fails to provide documentation of payments made or other financial decisions when requested, they could be subject to consequences for breaching their fiduciary duty to the principal. As such, it is critical to check on the record-keeping of an agent periodically.
Failure to Make Proper Medical Decisions
There is additional opportunity for power of attorney abuse when it grants medical decision-making power to an agent. This could include a failure to provide or seek out the proper medical attention as well as a failure to take into account the principal’s best interests when making a medical decision.
Unfortunately, there are several ways for an agent to abuse or misuse a power of attorney, so it is imperative to seek the assistance of a New Jersey lawyer well-versed in power of attorney abuse and misuse to help identify whether an agent has failed to act in the best interests of the principal.
Potential Consequences for Power of Attorney Abuse
There could be significant consequences for any abuses or misuses of the power granted by a power of attorney. Typically, the consequences include civil ramifications; however, there are also potential criminal charges for misuses of decision-making power.
The common civil consequence for an agent includes paying restitution for any stolen or fraudulently converted funds. This entails paying the money back to the principal with interest, in some cases. Some of the common criminal charges that an agent could be prosecuted for in New Jersey include fraud, embezzlement, theft, and exploitation of another person. A knowledgeable New Jersey trust & estate, probate, and probate litigation specialist could help fight to recover any misused funds for a principal.
Contact a Lawyer Skilled in Power of Attorney Abuse Cases Today
Granting another individual power of attorney is typically meant to provide stability and a sense of relief and peace because it can be used to provide protection to disabled or struggling individuals. However, if one believes that their agent is abusing the power granted to him or her, there could be severe consequences if nothing is done to stop the abuse.
An experienced New Jersey trust & estate, probate, and probate litigation lawyer could assist individuals that might suspect an abuse misuse of any power granted to an agent and work to bring the sense of peace back to the principal of a power of attorney document.
Contact me today if you suspect that your family or loved one is engaging in power of attorney abuse or misuse. Power of Attorney owes a fiduciary duty to the principal to act solely within their best interests.
