When a loved one designates another as the power of attorney agent, disaster can often ensue if they are unprepared for the emotional consequences and potential bureaucratic nightmares.
Being informed can save yourself and your loved ones trouble, or at least mitigate the problems.
Here are 6 common issues that you should be aware of and how to prepare for them:
Problem #1: Family Feuds
If a parent chooses one of their children to act as their POA agent, other siblings may react poorly. This is usually due to strong emotions, issues of trust, and access to money other siblings think they should have an equal right to.
In families where strong sibling rivalry has been a factor, choosing one child to be a power of attorney agent can be a difficult decision.
How to mitigate
Navigating complicated family relationships is difficult at best. Parents can consider designating multiple children as co-agents to avoid maximum insult, which could create a permanent rift. Keep in mind, with this route, it’s best if the children all live nearby and are in regular communication, so there’s no delay if important decisions need to be made.
If multiple co-agents aren’t the best option, parents should include specific instructions in the power of attorney form about how the agent can act on their behalf, not to give them too much power over their affairs.
It’s also a good idea to communicate unbiased, clear reasons why the POA agent was chosen (such as access to affairs or relevant professional experience) to other children.
Problem #2: Second Thoughts
When a loved one reaches out and asks for help, often there is no second thought. Moved by familial bonds, the natural reaction is to accept the responsibility graciously and with the best intentions. However, it is not uncommon to have regrets later.
Some age-related illnesses result in patients developing abusive behavior that is too difficult for a loved one with no special training to manage. The time demands can also become restrictive and begin to harm a loved one’s relationship with a spouse or their own children.
How to mitigate
When you create your power of attorney form, it’s a good idea to give your agent the power to delegate their responsibilities to another person if they feel they can’t sufficiently carry out their duties as agents. This way, they can easily resolve the situation without appearing in court to designate another conservator.
Problem #3. Abuse Of Power
The nightmare scenario for anyone considering giving another person access to their personal affairs is if the designated person abuses their power as an agent.
It is also possible for someone with the wrong motives to neglect to provide the proper care. This could become the case if an heir is looking to minimize expenses to maximize a potential inheritance.
How to mitigate
Actions such as these are crimes and should be reported to local authorities who handle elder abuse, like local Adult Protective Services.
A power of attorney agent is required by law to act in the principal’s best interests, and loved ones can petition the court to remove a power of attorney who is not acting according to this responsibility.
To prevent giving your agent too much power when drafting the power of attorney form, you should write in special instructions about how they may or may not act on your behalf.
Problem #4. Statute Of Limitations
In some cases, a person has used their power of attorney to perpetrate fraud, such as transferring deeds into their own name.
Unfortunately, such fraud may not be discovered until the loved one has passed away and family members examine their affairs more closely. By the time the fraud is discovered, it’s possible that the time limit has passed to succeed in a legal complaint due to the statute of limitations.
How to mitigate
If you find such a case has occurred within your own family, don’t despair. Some states have in place a discovery rule that accounts for situations like this. If an injured party had not been able to discover the fraud through due diligence within the statute of limitations timeline, there might still be time to file a complaint.
Problem #5. Careful Selection
In the right hands, a power of attorney can give a person peace of mind and provision of excellent care when they are at their most vulnerable. In the wrong hands, it can be a disaster.
How to mitigate
Avoid disastrous aftermath by carefully selecting an agent who you trust and including provisions for changing the agent or their powers in the power of attorney document should it be necessary.
Also, don’t delay in planning your estate before the need arises. You can utilize important legal documents such as powers of attorney, living wills, and trusts to communicate your wishes for care and asset management.
Share this important information with your loved ones, enabling them to be included and hold one another accountable.
