Elder Financial Abuse & The General Power Of Attorney: A License To Steal That Needs To Be Revoked?

The fourth in a series of editorials by the Contra Costa Times (Northern California) on elder financial abuse focuses on a legal document known as a General Power of Attorney, the ease with which it can be obtained and used to fleece a vulnerable senior citizen by an unscrupulous individual, and the need to reform the laws that regulate the use of this document. Excerpts from the editorial:

• A general power of attorney gives one person control over another's assets, including money, stocks, real estate, pensions, family heirlooms and anything else of value. In the right hands, it's a valuable estate planning tool. In the wrong hands, it is a financial lethal weapon.

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• The California Power of Attorney Act [begins at Section 4000 of the California Probate Code] was meant to ease the burden on families caring for elderly relatives unable to handle their own affairs. It allows them to quickly tap a senior's bank accounts to pay for his needs and to manage his financial affairs. The problem is that the lack of regulatory oversight has left the door open for rampant abuses. Any scoundrel can coerce an easily influenced elderly person into signing a power of attorney.

• Once this powerful document is in hand, the abuser is off to the races. A power of attorney is the key to the treasure chest. It's amazing, really, how easy it is to get a document that gives almost instant access to everything someone else owns. The form can be downloaded off the Internet or purchased at any stationery store. You don't need a lawyer. It doesn't have to be reviewed by any government agency. Power of attorney forms are not recorded anywhere.

The point is made that while the law regulates the conduct of the holder of the power of attorney, the problem is that there is one making sure that the holder is following the law. Awareness of any ongoing ripoff of the senior usually occurs when the damage can no longer be mitigated.

For more, see Theft of Elder Nation: An editorial series (State needs to revoke theft license) (may require free registration).

Go here for all posts and links to this Contra Costa Times editorial series on elder financial abuse.

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