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Abuse of Enduring Powers of Attorney elder abuse capacity issues wills estates law

Abuse of Enduring Powers of Attorney

I am receiving increasing interest and enquiry from clients about abuse, or perceived abuse, of an Enduring Power of Attorney. Often I am approached by one family member who is concerned about the conduct of another family member who has been appointed as an Attorney for their parents who have lost capacity.

The Attorney’s Control

It is very important to understand the extent of control that an Attorney can have over a person’s assets. These powers include:

  1. Dealing with monies in bank accounts;
  2. Dealing with property;
  3. Applying to the Court for a statutory Will to be made;
  4. Severing joint tenancies for the ownership of property;
  5. Taking out mortgages on behalf of the attorney;
  6. Installing themselves as “Carers”;
  7. Changing death benefit nominations for insurance and superannuation;
  8. Taking control of family trusts;
  9. Amending trust deeds;
  10. Withdrawing superannuation.

A “creative” attorney can deal with the assets of the person who appointed them in a number of ways to deplete those assets.

Control the Controller

It is very important that the actual document appointing a person as an Enduring Power of Attorney is thoroughly considered to protect your assets. Matters that need to be taken into account include:

  1. Who to appoint – it is imperative that a person you appoint is someone that you absolutely trust and that some protection mechanisms are put into place. For example you can have more than one attorney who must jointly make decisions;
  2. Controls – You can insert some protective controls to restrict the attorney’s power to deal with some of following:
  3. Business affairs – Dealing with the incapacity of directors and shareholders, carrying on your business, providing guarantees for any borrowings;
  4. Family Trust – You should review your trust deed to consider what happens on the incapacity of a trust and consider who has the power to control the trust and appoint a new trustee;
  5. Conflict transactions – where the attorney may transfer assets to him or herself. You can prevent the attorney from engaging in a conflict transaction unless specific transactions are allowed and recorded;
  6. Your Will – You should make sure that the attorney is aware of the contents of your Will and the effect that their decisions may have on bequests you have made;
  7. Have more than one attorney appointed;
  8. Superannuation – You should ensure that proper advice is obtained before superannuation is dealt with and consider whether or not an attorney can make or renew any superannuation death benefit nomination;
  9. Your accommodation in to the future – If a nursing home is not preferred you may stipulate what type of care you would like;
  10. Obtaining financial and legal advice;
  11. Caring for pets and children;
  12. Life and lifestyle generally.

It is very important to invest your time to properly consider all of the implications in appointing a person as an Enduring Power of Attorney. Detailed consideration of these matters could avoid considerable for you and your family. Please do not hesitate to contact me if you have any queries or concerns in relation to an Enduring Power of Attorney.

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The information provided in this article is for general information and educative purposes in summary form on legal topics which is current at the time it is published. The content does not constitute legal advice or recommendations and should not be relied upon as such. Whilst every care has been taken in the preparation of this article, Wills, Estates and Probate Lawyers (WEP Lawyers) cannot accept responsibility for any errors, including those caused by negligence, in the material. We make no representations, statements or warranties about the accuracy or completeness of the information and you should not rely on it. You are advised to make your own independent inquiries regarding the accuracy of any information provided on this website. WEP Lawyers does not guarantee, and accepts no legal responsibility whatsoever arising from or in connection to the accuracy, reliability, currency, correctness or completeness of any material contained in this article. Links to third party websites or articles does not constitute any endorsement or approval of those sites or the owners of those sites. Nothing in this article should be construed as granting any licence or right for you to use that content. You should consult the third party’s terms and conditions of use in relation to any third-party content. WEP Lawyers disclaims all responsibility and all liability (including liability for negligence) for all expenses, losses, damages and costs you might incur as a result of the information being inaccurate or incomplete in any way. Appropriate legal advice should always be obtained in actual situations.

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Written by—

Chloe Kopilovic

Call 07 3035 4077 to speak with our team now