There are few situations where a financial power of attorney should be executed by your loved one that allows their lawyer the immediate power to make financial decisions. One of the simplest ways to commit elderly financial exploitation is by financial powers of attorney.Learn more by visiting JacksonWhite Law
The alternative approach is to permit the authority of the agent to be issued only after two eligible medical practitioners announce in writing that the elder is mentally incompetent and unable to make sound financial decisions under penalty of perjury.
This provision, while still not foolproof, offers a great deal of protection against financial abuse. To carry out the rip-off, a bad guy must now have two doctors involved.
It is still possible for the perpetrator to simply make the elder enact a new attorney power that withdraws all prior powers and gives immediate authority to the agent. When family members and friends actively engage in the life of the elderly, without being caught, the crook would have even more trouble doing this.
The chances of being financially abused are dramatically enhanced when the elder has no immediate family or friends. However certain mitigation steps that can be taken to minimise the risk are also in place.
Speak to bank employees and other financial institutions where the money of the older person is spent. Show them the power of the attorney and clarify that in case anyone tries to take advantage of it the object is to protect the elder. Point out the added security needed by two competent medical doctors to confirm the absence of ability of the elder until the attorney’s power is successful.
By inserting a computer notation that the bank workers should challenge any significant withdrawals or suspicious behavior, ask them to red-flag the elder’s accounts.