As people age, it is extremely common for individuals to appoint one or more Powers of Attorney (POA). Although people frequently use the term “Power of Attorney” to describe certain individuals, it actually refers to a legal document. This document authorizes someone to make financial or health care decisions for you if you are unable to.

There are two types of POAs: property and personal care. A POA for property handles bills, manages bank accounts, oversees investments, and files taxes. Despite the term “property,” this actually pertains to finances. A POA for personal care makes decisions about healthcare, housing, clothing, and other personal matters.

Addressing Misappropriation or Misconduct
As a power of attorney, it is crucial to maintain a proper record of all transactions, whether or not you handled them. If it is found that the records (known as accounts) do not comply with the Rules of Civil Procedure, or if there are disputes regarding the transactions, misappropriate of property, disagreement over the POA’s compensation, an application to pass accounts may be filed in Court.  

The Court can order a passing of accounts depending on the complexity and size of the property, other ongoing litigation, and the associated documents.  A passing of accounts requires the POA to present these records for approval. If the Court finds any improper behavior, the Court can suspend the POA’s role and order repayment of misappropriated funds.

In McAllister Estate v. Hudgin, the Court ordered the deceased’s daughter, who was also the POA of the deceased, to account to her brother. The Court made this decision after the brother, a beneficiary of the estate, raised concerns about missing funds that should have been in the deceased’s account at the time of death.

Takeaways 
For those looking to appoint a POA, it is possible to appoint multiple POAs, including lawyers, family members, or friends. However, it is crucial to choose someone trustworthy who understands your desires and needs. If there is any doubt about the handling of your affairs, one option is to file an application for a passing of accounts. As experts in litigation, we frequently assist individuals who have been taken advantage of by their POA. We provide support in filing and reviewing applications for passing accounts. 

If you are a POA, it is essential to maintain meticulous records of the property and assets you manage. As litigators, we also protect your interests in disputes, ensuring that you fulfill your duties in compliance with the law. 

POAs and those considering appointing one can contact us anytime with questions about their rights