Power Of Attorneys Increasingly Used to Wipe Out Elder's Finances

TREASURE VALLEY-Idaho-USA Mike Butts mbutts@idahopress.com

Abusing power of attorney agreements has become a more serious problem in the Treasure Valley and across the United States. And a bill a professional group will present to the Idaho Legislature this year could work to change that.The power of attorney, which gives someone else the ability to legally take over another person’s financial affairs, is often used by older people no longer mentally or physically able to handle their own finances. They often sign the power over to their adult children.

The power of attorney, which gives someone else the ability to legally take over another person’s financial affairs, is often used by older people no longer mentally or physically able to handle their own finances. They often sign the power over to their adult children.

But family members or others have been increasingly taking advantage of powers of attorney and stealing money and assets from the elderly, sometimes completely wiping out a person’s finances.

“It’s really unlimited, the kind of damage that can be done,” said Sarah E. Scott, state adult protection coordinator for the Idaho Commission on Aging. “We’re seeing it happen a lot.”

While power of attorney abuses are not tracked in Idaho, some of those who deal professionally with the issue say it is on the rise. And it may get worse as the population ages and the popularity of power of attorney agreements increases.

Bob Aldridge of Boise, an elder law attorney, belongs to a group that wants to more clearly define power of attorney laws in the state. Aldridge said one of the unfortunate aspects of the issue is that family members are the most frequent guilty parties in power of attorney abuse.

“These days you have to be very suspicious and protective, even including family, which is a sad commentary,” Aldridge said.

With family members, abuse can happen when the power of attorney agent, or the person who assumes control of the assets, runs into money problems or wants money for a drug habit, Scott said.

“As our economy continues to worsen I think we’ll see more of it,” Scott said. She said sometimes the problem starts when the agents think they will borrow money with the intent of paying it back, which never happens.

Power of attorney abuse also occurs with acquaintances or scam artists. Someone could befriend an older person and convince them that giving them power of attorney would be beneficial.

Both Scott and Aldridge say power of attorney agreements should not be entered into without serious consideration.

“It’s an excellent planning tool, but I think people oftentimes don’t think about the consequences,” Scott said. “I’m not sure attorneys spend enough time talking with (clients) about it. I’m not sure they know the extent of the misuse and abuse of those documents.”

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