Shielding Against Abuse of a Power of Attorney

 

Lawyers will give you advice that you should have a power of attorney. An electric of Attorney is an important document that enables someone else to handle your affairs if you have difficulty or can't do so. With age and illness, an electric of Attorney often becomes necessary. Usually the person who is given the authority to do something will do so with the best of motives. What are the results, however, if the person you trust misuses the ability of Attorney for personal gain or benefit? An electric of Attorney may seem like a simple document, but it can have far-reaching and unintentional consequences. An electric of Attorney can be very tempting to the person who has it.

An electric of Attorney is a legal document by which a person (the "Principal") gives someone else (the "Agent" or "Attorney-in-fact") the authority to do something on the Principal's part. If the Principal becomes ill, incapacitated or otherwise unable to handle her financial affairs, or simply prefers to let someone else do it for her, the person or persons she designated in the Power of Attorney is beneficial bills, deal with banks, lawyers and other professionals, and do other things that are in the best interest of the Principal.

An electric of Attorney can be general, which means that it provides the Attorney-in-fact the authority to do needs to be Principal might do for herself, or Attorney vs lawyer, meaning that it is limited in scope and/or time. For example, an electric of Attorney may be limited to one specified act or type of act, such as a limited Power of Attorney to go to a real est closing and sign the closing documents on behalf of a buyer or seller, or it may be limited in time, such as a Power of Attorney that is effective only at that time that someone is out of the country on the road. An electric of Attorney also may be durable, which means that it takes effect upon its performance (or a specified date) and continues in effect even if the key becomes incapacitated, or popping, which means that it only takes effect after the Principal is incapacitated (or some other definite future act or circumstance). The problem with a popping Power of Attorney is that it requires a judicial determination of incapacity for the power to take effect. This can take a considerable amount of time -- plus the initiation of legal process, the hiring by the Court of an independent person to interview and investigate the circumstances of the supposed unskilled, and a hearing in Court -- often exactly at a most trying time when there is a need for prompt or immediate action.

In Nj, an electric of Attorney range from convention with respect to making health care decisions, including the power to consent to any health care bills, treatment, service or procedure. A health care power of attorney differs from the others than the usual "Living Will", which is a written statement of a model's health care and medical wishes, but does not employ another person to make health care decisions.

An electric of Attorney is a useful and powerful tool. Unfortunately, as with many things, something with a good purpose still can be used for improper purposes. An overall Power of Attorney allows the Agent or Attorney-in-fact to do most situations the key could or might do herself. As a result, it can be an invitation to abuse and self-dealing.