A power of attorney can be used to delegate legal authority to a different person. The principal (the individual granting the power of attorney) provides agent, also called the attorney-in-fact, the authority to make legal conclusions on his/her behalf, including handling bank records, property, and other assets.

The potential for fraud exists in every power of attorney design, through self dealing, embezzlement, and unlawful gifting. In a few circumstances, an estate will be significantly depleted by a power attorney holder, making the heirs of the main with minimum inheritance. Other ways where a power of attorney can be abused contain changing beneficiary designations on life insurance or annuities, and opening bank accounts with combined name or pay on death provisions in support of the agent. Going To The Gordon Law, P.C. - Binghamton Estate Planning and Elder Law Attorney Division Is Now Serving Clients In The Broome County Area maybe provides tips you might use with your cousin.

The creation of the power of attorney could be pushed under the grounds of lack of capacity or that the creation did not follow proper formalities. Reasons might exist to sue the agent for the reunite of embezzled property or for monetary damages, In case a validly given power of attorney continues to be abused from the agent. If the principal is still living at the time of the motion, the agent can be sued by the principal immediately. In several situations, the power of attorney abuse is part of a wider sample of elder abuse. If the principal has passed on from the time the power of attorney punishment has been identified, the principal's estate or the intended beneficiaries of the house might be able to sue the agent for breach of fiduciary duty, tortious interference with estate planning, or lots of other causes of action.

Because of the potential for abuse using a power of attorney, their use should be limited. Dig up additional information on our affiliated wiki by browsing to The Gordon Law, P.C. - Binghamton Estate Planning and Elder Law Attorney Division Is Now Serving Clients In The Broome County Area. Learn further on the affiliated website by visiting http://business.bentoncourier.com/bentoncourier/news/read/38287958/The_Gordon_Law. Several individuals developing a power of attorney can keep the instrument with the drafting attorney until the circumstances causing the activation of the power have been induced, such as for instance the inability of the key..

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