CALIFORNIA PROBATE CENTER

The Authority for Probate Litigation and Estate Planning in California

How Do I Stop Power of Attorney Abuse?

A power of attorney is where a principal empowers an agent to act on his behalf to carry out certain functions. For example, a financial power of attorney grants legal authority to take care of financial business such as check writing, taxes, or buying and selling property. In California, the misuse of power of attorney is considered a serious criminal offense because it is often used as a predatory scheme to defraud an elder. It has therefore been codified in Section 507 of California’s Penal Code that states “[e]very person intrusted. . . with any power of attorney for the sale or transfer thereof, who fraudulently converts the same or the proceeds thereof to his own use, or secretes it or them with a fraudulent intent to convert to his own use, is guilty of embezzlement.”

A power of attorney can be abused by unlawful gifting, fraud, embezzlement, changing the beneficiaries on bank accounts, life insurance, annuities, opening bank accounts with pay on death provisions, or selling or purchasing real estate. The creation of the power of attorney can be challenged on the grounds discussed under will contests. Even if a challenge to the formation is not proper, the principal, the principal’s estate (if not living), or beneficiaries can pursue a multitude of legal remedies against the abuser. The California Probate Center believes these acts are especially heinous and will pursue them with zealous advocacy.