How can I avoid being financially exploited by my POA?
Financial exploitation is a becoming a major problem for many seniors in Colorado. At the Law Offices of Colorado Estate Planning Law Center, we understand that many seniors who have powers of attorney are interested in learning how to protect themselves from financial exploitation. We recommend for them to carefully examine their options and take the following factors into consideration when choosing their POA.
Limit the capacity to act
According to AARP.org, seniors should limit the responsibilities of the people they have acting as their powers of attorneys. They should take some time to determine exactly how they need them to act when it comes to dealing with their finances. For example, if you only need a power of attorney to ensure that your medical bills are paid, then there is no reason for you to give your agent full control or access to your finances. You can specify the responsibilities your power of attorney has.
Choose a trustworthy agent
People should also take trust into consideration. A person who has power of attorney over someone is legally responsible for their legal, medical and financial affairs. It is important for seniors to choose representatives they can trust for the long-term to manage their affairs responsibly and in accordance with their wishes and best interests.
You have control over how much or little authority you give your power of attorney. You can expand and limit their responsibilities as you see fit. If you suspect that your agent is acting in an untrustworthy manner that results in the mismanagement of your finances, then you can limit or rescind their authority. For more information concerning estate planning and power of attorney, please visit our web page.