Elgin, IL Lawyer for Power of Attorney Misuse
A Power of Attorney (POA) is a crucial legal document that allows a trusted individual (the “agent”) to make financial decisions on behalf of another person (the “principal”). When used correctly, it is a vital tool for managing an individual’s affairs when they are unable to do so. However, in the wrong hands, a POA can become a license to steal. When an agent violates their legal duties for personal gain, it is a serious breach of trust and a form of financial exploitation. At The Law Offices of Anthony R. Scifo, we are a trial-ready litigation firm in Elgin that holds abusive agents accountable.
Our firm is dedicated to this complex area of elder law litigation. We understand the profound sense of betrayal families feel when they discover a trusted agent has been misusing a loved one’s assets. We take immediate, decisive action to stop the abuse, freeze assets, and fight to recover everything that was wrongfully taken. If you suspect POA abuse, do not wait. Call us at (847) 628-8311 for a free, strictly confidential consultation.
The Fiduciary Duty of a POA Agent in Illinois
An agent acting under a Power of Attorney is not free to do whatever they want with the principal’s money. Under Illinois law, an agent is a “fiduciary.” This means they owe the principal the highest duty of loyalty, care, and good faith recognized by the law. This is not just a moral obligation; it is a legally enforceable one.
As detailed in the Illinois Power of Attorney Act, an agent has specific duties, including:
- To act solely in the best interest of the principal.
- To keep their own property completely separate from the principal’s property.
- To maintain a meticulous and accurate record of all receipts, disbursements, and transactions.
- To act with care, competence, and diligence for the benefit of the principal.
When an agent violates any of these duties for their own enrichment, they have committed a breach of fiduciary duty and can be held liable for the damages they have caused.
Common Examples of Power of Attorney Abuse
POA misuse can take many forms, from subtle exploitation to outright theft. We investigate and litigate all forms of abuse, including:
- Improper “Gifting”: The agent makes large financial “gifts” from the principal’s funds to themselves, their friends, or their children without legal authority.
- Changing Titles and Beneficiaries: The agent uses their power to add their name to bank accounts, investment accounts, or real estate titles.
- Paying Personal Expenses: The agent uses the principal’s bank accounts or credit cards to pay for their own mortgage, car payment, vacations, or daily living expenses.
- Commingling Funds: The agent mixes their own money with the principal’s money, making it difficult to trace and often leading to theft.
- Fraudulent Sales: The agent sells the principal’s valuable assets, like a home or car, for less than fair market value to a friend or associate.
This type of exploitation is often a form of caregiver financial abuse, as caregivers are frequently the ones entrusted with the POA.
Our Legal Strategy for Fighting POA Misuse and Recovering Assets
When we take on a POA abuse case, we move quickly and strategically to protect our client and their assets. Our legal process includes:
- Demand for a Full Accounting: We make an immediate formal demand that the agent produce a complete record of every transaction they have made since their appointment. A failure or refusal to do so is a major red flag for the court.
- Filing a Lawsuit: We file a lawsuit alleging Breach of Fiduciary Duty, Financial Exploitation of the Elderly, and other claims. We can ask the court for an emergency order to freeze the principal’s accounts to prevent further theft.
- Aggressive Asset Recovery: The ultimate goal is to get a judgment against the abusive agent for the full amount of the stolen assets, plus interest and sometimes punitive damages. We then use post-judgment collection tools to seize their assets and recover what is rightfully yours.
Frequently Asked Questions About POA Abuse
The POA document says the agent can make gifts. Does that mean they can give money to themselves?
Almost never. Unless the Power of Attorney document contains unusually specific and explicit language authorizing the agent to “self-gift,” they are prohibited from giving the principal’s money to themselves. This is one of the most common forms of POA misuse.
Who has the right to sue an agent for POA abuse?
The principal themselves can sue if they still have legal capacity. If they are incapacitated, a court-appointed guardian, another interested family member (with the court’s permission), or the executor of the principal’s estate after their death can file a lawsuit on their behalf.
What should I do if I’m the agent and I’m being falsely accused of misuse?
You must take the accusation seriously and hire an attorney immediately. The key to your defense will be the detailed records you kept. A complete and accurate accounting that shows every transaction was made for the principal’s benefit is your strongest defense against a claim of misuse.
Hold Abusive Agents Accountable. Contact Us Today.
A Power of Attorney is a tool of trust, and when that trust is broken, the consequences are devastating. The Law Offices of Anthony R. Scifo is committed to fighting for victims of financial exploitation and restoring what was wrongfully taken.
Call our Elgin office now at (847) 628-8311 for a free, confidential consultation to discuss your case.