Power of Attorney and Abuse of the Elder

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Category: Education
     
 

Presentation Description

This presentation accompanies Ashby L. Pope's article entitled, "Stealing From Grandpa? – How the Attorney Can Combat the Abuse of a Valid Power of Attorney for His Elderly or Incapacitated Client," written for a class at Regent University School of Law. The professor posted the paper & presentation on her Family Restoration blog. Read more at http://regentfamilyrestoration.blogspot.com/2010/07/fam ilies-ought-to-be-best-protectors.html. Learn more about Regent University School of Law at http://law.regent.edu.

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By: GreyP (23 month(s) ago)

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Presentation Transcript

Power of Attorney and Abuse of the Elderly and the Incapacitated : 

Power of Attorney and Abuse of the Elderly and the Incapacitated Ashby Leigh Pope

How can attorneys help protect their clients? : 

How can attorneys help protect their clients?

Vocabulary : 

Vocabulary Power of Attorney - An instrument granting someone authority to act as agent or attorney-in-fact for the grantor. Principal – One who authorizes another to act on his behalf as an agent. Agency – A fiduciary relationship created by express or implied contract or by law, in which one party (the agent) may act on behalf of another party (the principal) and bind that other party by words or actions.

Vocabulary (Continued) : 

Vocabulary (Continued) Fiduciary Relationship - A relationship in which one person is under a duty to act for the benefit of the other on matters within the scope of the relationship. Fiduciary – 1. One who owes to another the duties of good faith, trust, confidence, and candor. 2. One who must exercise a high standard of care in managing another’s money or property.

Types : 

Types General Power of Attorney – A power of attorney that authorizes an agent to transact business for the principal. Special Power of Attorney – A power of attorney that limits the agent’s authority to only a specified matter.

Types (Continued) : 

Types (Continued) Durable Power of Attorney – A power of attorney that remains in effect during the grantor’s incompetency. This POA becomes effective upon signing, like the General POA. Springing Durable Power of Attorney – A power of attorney that does not become effective when it is signed, rather it springs into effect at a later specified time, or in the event of a specified condition.

Hypothetical : 

Hypothetical John is a 58 year old man who has become ill with cancer John does have a power of attorney and a will The holder of the POA is John’s brother The beneficiaries under the will are John’s kids The POA becomes active and now Bob is saying he needs to sell the house to pay John’s medical expenses Bob is a loser who has never had a steady job and has sponged off of his family his entire life

What if John was your client? : 

What if John was your client? What would you tell him on your initial consult? Have him fill out the questionnaire. Talk to him. Tell him what you think – even if it’s not what he necessarily wants to hear. Head off any problems – beneficiaries under the will, agent/holder of the power of attorney, healthcare proxy, etc.

What if John was your client? : 

What if John was your client? … And there is a problem after the documents have been properly drawn up and executed? http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+11-9.1

What if John was your client? : 

What if John was your client? What if Bob comes to you for advice? What can you tell him? Who is your client? What if John’s kids come to you for advice? What can you tell them? Who is your client? Be careful, you may owe duties to the benficiaries under the will.

How do you protect yourself? : 

How do you protect yourself? Document, document, and document!! Written memos in your file and copies of letters sent to the client are the best method. Make it clear that you anticipated these problems and that your client was fully aware of it and decided to do it anyway. Carefully review the Model Rules of Professional Responsibility. ** Pay special attention to the duty of confidentiality!**

How do you protect your client? : 

How do you protect your client? What about the crime-fraud exception to the duty of confidentiality? Exploitation of the elderly/incapacitated is crime! It could be: embezzlement, fraud, larceny, etc. http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+18.2-369 http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+18.2-111 Do you have a duty to report it? Can you advise the children to request an accounting from a court? Or should you encourage them to report it to the police?

Great Article! : 

Great Article! http://www.abanet.org/aging/about/pdfs/durable_poa_abuse_fact_sheet_criminal_justice_professionals.pdf

Go Back to the Textbook! : 

Go Back to the Textbook! Chapter 5 of our textbook is full of good information on Powers of Attorney! It mainly deals with just property, but it is a good place to get started if you have questions…