Elder Abuse - Do Your Research on Power of Attorney Call

Do research before yielding financial power of attorney
news@TimesRecord.Com


Elders At Risk - Special to The Times Record
By Jennifer T. Minkowitz

When Bob Johnson's wife died, he had to manage the household finances for the first time in his life. His wife had always balanced the checkbook and paid the bills during their 50-year marriage.

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Editor's note: In an effort to provide information on a contemporary social concern, The Times Record will publish submissions from the Elder Abuse Task Force of Mid-coast Maine on the second Wednesday of every month. Each month, a different writer will share his or her perspective on the issue. Unless otherwise noted, the scenarios described reflect composites of actual events, to protect the confidentiality of the individuals involved.
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If you suspect that a person is a victim of elder abuse, report it to your local law enforcement agency and to Maine's Office of Elder Services at 1-800-624-8404.

On the web: Maine Office of Elder Services
Feeling overwhelmed, Bob gladly accepted his daughter's suggestion that he sign a Durable Financial Power of Attorney giving her the authority to manage his financial affairs.

Someone told Bob he should consult a lawyer about it, but he didn't see the point of paying a lawyer for a simple form. He bought a form at his local office supply store for a few dollars and signed it in front of a notary as required by Maine law.

Bob's health began to decline and eventually he had to go to a nursing home. It gave him peace of mind to know that his daughter, Peggy, would be able to do his banking and make sure the bills got paid.

After just a few months, Peggy stopped paying Bob's bills, including his monthly nursing home bill. Bob found out about it when he got an eviction notice from the nursing home. By then, the nursing home bill was more than $15,000.

Bob figured it was just an oversight, but it wasn't. His daughter had spent most of his money, and there wasn't enough left to pay for his care.

This case is based on many similar cases I have heard about as an attorney who works with older adults. Sadly, family members are most likely to financially exploit a senior. In fact, according to a 2004 survey of State Adult Protective Services cases, the majority of perpetrators of financial exploitation were adult children and other relatives of the victims.

The good news is that there are steps you can take to reduce the risks of potential financial abuse by a family member.

First, you can execute a Durable Financial Power of Attorney, appointing someone you trust to manage your financial affairs for you if you become incapacitated. You can choose anyone to act as your agent — a family member, a friend, or someone else you trust.

Carefully consider whom to appoint as your "agent" to manage your finances. The person should have the basic skills required to manage your finances. If he or she can't balance a checkbook, you should consider choosing someone else.

The most important consideration is trust. Do you trust the person completely?

Avoid choosing someone experiencing financial difficulties; the person might be tempted to "borrow" your money. And if you are not satisfied with the way the person handles your money, you can revoke the Durable Financial Power of Attorney.

Resist the urge to use a do-it-yourself Durable Financial Power of Attorney form. The form may not be valid under Maine law, and even if it is, it might not adequately protect your interests. It is well worth the relatively low cost of consulting an attorney familiar with elder law and estate planning. An attorney can tailor the document to suit your unique needs and protect your interests as much as possible.

A Durable Financial Power of Attorney is a powerful legal tool that can be dangerous in the wrong hands. Before signing a Durable Financial Power of Attorney, be sure to consult an attorney familiar with elder law and estate planning. If you cannot afford an attorney and are 60 or older, call Legal Services for the Elderly at 1-800-750-5353 for free legal advice.

Jennifer Minkowitz is an elder law attorney at the law firm of Robinson, Kriger and McCallum in Portland. She can be reached at (207) 772-6565.

Source: The Times Record