A power of attorney is employed to delegate legal authority to a different person. The main (the individual giving the power of attorney) gives the agent, also called the attorney-in-fact, the authority to produce legal conclusions on his/her behalf, including handling bank accounts, property, and other assets.
The possibility of fraud exists in every power of attorney design, through unlawful gifting, and self dealing, embezzlement. In certain circumstances, an estate will be significantly depleted by a power attorney holder, making the heirs of the key with minimum inheritance. Other ways in which a power of attorney can be abused include changing beneficiary designations on life insurance or annuities, and opening bank accounts with joint name or pay on death provisions in favor of the agent. Dig up more on this affiliated link - Click this link: http://heavenslaw.com/.
The creation of the power of attorney might be questioned under the lands of insufficient capacity or the creation did not follow proper formalities. In case a validly given power of attorney is abused by the agent, reasons may possibly exist to sue the agent for the return of embezzled home or for monetary damages. If the principal is still living at the time of the motion, the agent can be sued by the principal directly. In many situations, the energy of attorney abuse is part of a wider sample of elder abuse. If the key 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 could be ready to sue the agent for breach of fiduciary duty, tortious interference with estate planning, or several of other causes of action.
As a result of possibility of abuse using a power of attorney, their use must be limited. The instrument will be left by many persons creating a power of attorney with the drafting attorney until the conditions triggering the activation of the power have been triggered, including the inability of the key..