Power of Attorney Stealing Inheritance.

What to Know about Power of Attorney

Nonetheless, a financial power of attorney agent cannot deny you access to your parent, excluding instances where there is a need to preserve your parent’s health, where an agent with medical power of attorney can restrict access. Any action beyond those parameters by the agent does not serve the parent’s well-being and hence may constitute abuse. During times like this, an investigation is appropriate. If you believe your sibling is abusing their position as power of attorney, what can be done in this situation is explored more below.

my sister is stealing my inheritance

“Believing your sister is taking your inheritance unlawfully? Legal recourse is available. If a court determines she’s deprived you of your rightful share, you can initiate a surcharge action against her, making her accountable for any losses to the estate. Depending on jurisdictional laws, she might also face punitive damages, particularly if a breach of fiduciary duty is established.”

WHAT IS POWER OF ATTORNEY?

A power of attorney (POA) is a legal document authorizing an agent (trusted person) to make choices and take actions in the individual’s capacity, giving a POWER OF ATTORNEY in various situations. Suppose your elderly parent is incapacitated due to illness or disability, or they don’t feel comfortable managing their finances.

In that case, you may want to apply for a power of attorney as their child. The principal may appoint another responsible adult to act as the principal’s healthcare decision-maker through a medical power of attorney, for instance, in matters of elderly care or medical services.

A medical power of attorney must have a written certification from the principal’s doctor confirming that the principal is incapable of making their own health care choices.

WHAT ARE EXAMPLES OF POWER OF ATTORNEY ABUSE?

The agent under a power of attorney must serve your parent’s best interests. Agents may breach their fiduciary obligation when they take advantage of their position to further their interests in the following ways:

· Embezzlement of funds

· Financially neglecting the principal

· Self-inclusion on property titles

· Acquiring credit through the principal’s identity

· Changing life account details to become beneficiary

· Transfer of power of attorney to other parties

· Changing a will

· Unauthorized credit card use

sibling stealing from estate

Misappropriation of estate assets by a sibling or other party can be contested through legal channels, with sufficient proof enabling a probate attorney to pursue restitution.

HOW CAN I PROVE THAT MY SIBLING IS ABUSING A POWER OF ATTORNEY?

Establishing a power of attorney and granting this broad authority raises concerns about the possibility of SIBLINGS ABUSING POWER OF ATTORNEY through fraud, personal gain, and misappropriation, particularly in cases involving large amounts of money and easily accessible assets.

Your sibling may be tempted to do something dishonorable when they have easy access to such property; therefore, it would help if you investigate the situation further. To be safe, you should probably request some financial documentation.

The jurisdiction of power of attorney is limited to the following:

• Withdrawal and Transfer of funds
• Acquisition and sale of property
• Real Estate transactions
• Making investments

HOW DO I RECOVER THE STOLEN INHERITANCE?

ADVICE YOUR PARENT TO RETRACT THE POWER OF ATTORNEY

If you suspect your sibling is cheating your parents, the most straightforward action would be to urge them to write and sign a request to cancel a power of attorney. It would be helpful if you made a follow-up to ensure your sibling has no control over any funds or property.

KEEP FINANCIAL RECORDS

You can review your parents’ bank records and other property documents to prove whether your SIBLING IS ABUSING the POWER OF ATTORNEY. Irregularities like fund or asset transfers to the agent’s accounts are alarming; hence you can get your lawyer to get the paperwork you need to investigate the extent of foul play if any. The court is another venue to order your sibling to submit a written account of their financial dealings.

The principal has the opportunity to raise objections to the accounting once your sibling has provided it. The court will penalize your sibling if it determines that they misappropriated the inheritance and may deduct the funds from your sibling’s portion if they are a beneficiary.

ASK FOR THE STOLEN INHERITANCE BACK

Promptly demand that your sibling return any stolen assets or money. There is no guarantee this will work, but it’s worth a go. Perhaps the theft was not intentional, and if it was, they might now prefer to return the money or property rather than face the possibility of a lawsuit or criminal prosecution when you show evidence.

FILE A LAWSUIT

Another option to recover STOLEN INHERITANCE is filing a lawsuit against your sibling based on breach of fiduciary duty, fraud, and other forms of abuse of power of attorney. Additionally, your parent can challenge the agent’s use of their power of attorney and recover any assets misused. Most clients need the help of a skilled litigation attorney to navigate these situations successfully in court since they are complicated and can consume plenty of your time.

HOW TO AVOID POWER OF ATTORNEY ABUSE

CHOOSE SOMEONE YOU TRUST

To start with, you must choose someone you would trust with your life to act as your power of attorney, as you are essentially giving that person the ability to make crucial life decisions on your behalf. This person could be a family member, close friend, or an impartial third party (a professional fiduciary) required to adhere to the highest ethical principles. It would help if you considered background checks and other proper research regardless of your chosen path.

RESTRICT THE ABILITY TO MAKE BENEFICIARY CHANGES

It will help if you don’t give the agent full access to your agent designations. Suppose you give your child or spouse power of attorney, for instance. In that case, you might stipulate that they have no authority to change your beneficiary designation, reducing the chances of misuse by restricting the scope of the agent’s responsibility.

APPOINT SECOND SIGNATORIES

The burden of decision-making need not rest on the shoulders of a single individual. Assigning a co-agent who should approve any critical decisions the primary agent intends to make can help prevent misuse. Optionally, you can add some signatures required for large transactions. In this case, the agent is still responsible for your interests but will need to confirm significant transactions with a second signature. The second set of eyes can keep an eye out for any irregularities.

HIRE AN ACCOUNTING FIRM

An independent third party can review the principal’s accounts and money transfers in a process known as “third-party accounting.” If you want to avoid misappropriation, this is a good option, as involving an outside accounting firm offers additional help to check the records and track the cash flow.

WHAT IS INHERITANCE HIJACKING?

Theft involving an individual’s inheritance is known as INHERITANCE HIJACKING, which can occur if one or more individuals fraudulently obtain ownership of property that was not intended for them in a Will. Sadly, this form of theft can have devastating effects on its victims and is mainly conducted by a close person, but there are rare instances where the inheritance thieves are strangers to the victims.

WHAT ARE THE FORMS OF INHERITANCE HIJACKING?

EMOTIONAL MANIPULATION

Giving support to an older loved one expresses caring in times of need. However, there have been many instances of dishonest people befriending the old or sick to steal their inheritance. Such a person might start trying to exert unwarranted influence over someone to persuade them to revise the will and include them as beneficiaries. Some may even go to the extremes of offering manipulative threats like denial of basic care or turning the old or sick person against their family by lying.

LOAN FAVORS

A person close to the elderly relative may borrow an unrecorded loan where the arrangement is made between the parties involved or the written version is not readily available. The borrower may try to hide the fact that they owe money to the estate by pretending the money was a gift or denying that they made a loan. The other heirs may be unaware of the lost funds or lack the evidence to prove what happened to them.

FRAUDULENT MARRIAGE

Legally, spouses of those who have passed away are entitled to a portion of the property left behind; hence untrustworthy people may try to lure old or sick wealthy people into marriage under the pretenses of taking someone else’s inheritance upon their demise.

THIEVERY

Many instances of inheritance theft involve some form of fraud. Unethical individuals in close contact may steal valuable items during or after their demise. In some instances, a family member excluded from the will may exact vengeance by robbing antics of the deceased. In other situations, an unpaid caregiver may opt to steal things as a form of termination payment.

TAKE AWAY

While picking a family member to act as your power of attorney agent can be problematic because it frequently results in disputes, you need someone close to you and trustworthy. The key to having a child, family member, or close friend serve as power of attorney is weighing the advantages and disadvantages.

A responsible and excellent financial manager with money would make the best option for an agent, whereas someone with debt is likely to misuse the power for personal gain. Call Hess-Verdon & Associates at 949-706-7300.