• 27
  • August
    2010

Frequently, Florida estate planning lawyers are asked about establishing a power of attorney, and almost as frequently, the topic of power of attorney abuse comes up. How can the abuse of a power of attorney be avoided? There are ways to make abuse less likely.

A power of attorney is a legal document that can be one of the most important factors in our lives. If we become incapacitated, a power of attorney can help ensure that our desires will be carried out for us by the right people at the right time. If a power of attorney is crafted well, it will increase the likelihood that our values will be respected and our intentions and goals will be pursued despite our incapacity. Some very good things about a powers of attorney are that they are easy to implement, relatively easy to understand and use, and inexpensive to create. For that reason, they are a very useful Florida estate planning tool. The bad thing is that they can also be exceedingly dangerous and, if they get in the wrong hands, can become instruments of financial abuse and exploitation. In the wrong hands, a power of attorney can become a "license to steal."

What can you do to prevent power of attorney abuse? Common protective practices include:

  • Name joint agents
  • Put a limit on who can receive gifts
  • Require approval of third parties for certain actions, such as gifts
  • Require the agent to file regular accounts or other reports with third parties
  • Require equal treatment among the beneficiaries if transfers are made

The most important consideration is that the person you name as your agent is someone with the time, ability, and honesty necessary to act on your behalf. Powers of attorney are powerful and useful tools. Make sure you have an expert Florida estate planning lawyer to help you, and take the time to make sure you are protected from power of attorney abuse.