Beware of Powers of Attorney

Powers of attorney are powerful documents that can be misused.  It is a crime to use a power of attorney for your own benefit, unless it specifically authorizes that.  It is a crime because, it happens.  If it never happened, there would be no need to criminalize it.

The worst case I personally was involved in involved a lady in her late 80s.  I got involved when her son stopped paying for her care at a memory care facility.  The Oregon Department of Human Services began an investigation.  They asked me to get involved.  I got a professional fiduciary appointed to take over the lady’s finances. 

I documented over $680,000 that a son took from his mother using a power of attorney she had given him.  He seemed to think investing in real property with small down payments was wise in 2006 and 2007.  By the time we got involved, the bottom had dropped out of the real estate market.  Mom’s money was gone.  Son did us the favor of purchasing himself an airplane and hanger with Mom’s money, so we were able to get back some of what he had taken.  The cost of the litigation was more than $40,000.  The situation was tragic. 

Be very, very careful about whom you give a power of attorney over your finances.