When Trusted Agents Go Rogue: Legal Remedies for Power of Attorney Abuse

Power of attorney abuse represents one of the most devastating breaches of trust that can occur within families and relationships. When someone appointed to handle financial and legal affairs betrays that confidence, the consequences can be financially devastating and emotionally traumatic.

Attorney Greg McIntyre tackles this crucial topic head-on, providing a clear roadmap for addressing situations where an agent under a power of attorney acts against the principal's best interests. He explains that North Carolina law offers specific remedies when agents fail to uphold their fiduciary responsibilities. The first approach involves petitioning the court for an accounting—essentially forcing the agent to present comprehensive documentation of all their actions taken on behalf of the principal. This transparency mechanism allows a judge to review the agent's conduct and, if necessary, immediately remove them from their position to prevent further damage.

For cases where the misconduct is discovered later or after the principal has passed away, McIntyre outlines how civil lawsuits become the appropriate remedy. These legal actions can address breaches of fiduciary duty and seek restitution for funds that have been wrongfully converted to the agent's personal use. Throughout the discussion, McIntyre emphasizes the fundamental principle that agents must always act in good faith and in the best interest of the person who trusted them with this significant responsibility.

Have you noticed concerning behavior from someone who holds power of attorney? Don't wait until the situation worsens. The team at McIntyre Elder Law has extensive experience prosecuting these cases and protecting vulnerable individuals from exploitation. Reach out today to discuss your concerns and explore your legal options for holding wrongful agents accountable.

Episode Transcript

Greg McIntyre (00:00):
Hi, this is attorney Greg McIntyre and this
is the Elder Law Report what todo if an agent under a power of
attorney, somebody acting forsomeone else under a general,
durable power of attorney, isnot upholding their actions or
their end of the deal or isacting against the best interest

(00:20):
or against not in good faith.
Interest or against not in goodfaith, maybe taking money from
someone or not exercising theirduties in a way they should or
to just gain themselves.
I've seen this in a number ofcases.
There's a couple of wayslegally that you can respond to
this If you are a loved one orfamily member who's in a bad

(00:44):
situation and there's an agentunder a power of attorney that's
acting wrongfully.
One is the North Carolinastatutes.
The law allows for a clerk upona motion.
It's kind of a small lawsuitthat is a petition for an
accounting for a power ofattorney.
That calls a hearingessentially for the power of

(01:09):
attorney, the agent under thatpower of attorney, to present an
accounting as to what they'vebeen doing all this time with
their power.
So it lays bare and puts infront of a court exactly what's
been going on front of a court,exactly what's been going on,
full of bank statements and anyother actions that have been

(01:30):
taken on the principal, theperson who made the power of
attorney and gave away the poweron their behalf by this person
that was appointed the agent.
Now if a court finds that andthe clerk finds that the agent
has acted wrongfully or has notbeen doing a good job, the court
has the power to remove thatagent immediately.

(01:51):
So to stop the bleeding thereof money or whatever's been done
.
Another way is sometimes wedon't find out about these
things until after the fact,sometimes maybe even if
somebody's passed away.
So there are civil suits thatcan be brought, civil legal

(02:12):
actions that are brought wherewe're saying that someone
breached their fiduciary duty.
In fact that accounting meetingmight be an initial meeting,
especially if someone's stillalive and you know the agent is
acting wrongfully under a powerof attorney.
Great evidence for a civil case.

(02:33):
That money has been takenwrongfully and that it's been
converted to the interest or tothe ownership of the agent and
that that agent should reimbursethe principal or the
principal's estate if thatperson passed away.
That they breached theirfiduciary duty as an agent under

(02:55):
the power of attorney and thatthey converted.
Civil conversion is anothertort or part of a civil lawsuit,
that they converted that moneyto their own interest and for
their own use and benefit,outside of what the power of
attorney allowed them to do, notacting in good faith, which

(03:16):
there's a duty of.
That fiduciary duty is really aduty to act in good faith in
the best interest of theprincipal who created the
document and appointed the agent.
So if you ever find yourself ina situation where you or a
loved one or family member hasan agent that's abusing,

(03:36):
misusing a power of attorney,wrongfully, nefariously, not
acting in good faith and in thebest interest of the principal.
Mcintyre Elder Law.
I'm Greg McIntyre.
I'm an attorney at our firm.
I can help, our attorneys canhelp and we have a lot of
experience prosecuting thoselawsuits.
No-transcript.