Power of attorney abuse happens when someone misuses the authority another person gave them through a power of attorney document. The agent named in the document might take money, transfer property for their own benefit, or make medical decisions outside the authority they received. If you suspect this is happening to a loved one in New Jersey, the power of attorney document is a starting point: it tells you what the agent is truly allowed to do and when. An elder law attorney can help you compare those powers with the agent’s actions and respond to any misuse.
Willis Law Group focuses exclusively on elder law and estate planning in New Jersey. We help families investigate concerns about an agent’s conduct and consider steps, including guardianship or estate litigation, when needed. Founding attorney Michael Willis brings more than 25 years of legal experience, including work as a prosecutor and trial attorney, to these matters.
What Is a Power of Attorney?
A power of attorney is a document in which one person, called the principal, authorizes another person, called the agent, to make specified decisions or take specified actions on their behalf. Typically, the power becomes effective if the principal loses their mental capacity to make their own decisions.
The principal determines what specific authority to grant to their agent. Depending on the document, an agent might be able to:
- Pay bills, access bank accounts, or manage investments;
- Sign contracts, handle taxes, or sell property; or
- Speak with doctors and make decisions about medical treatment.
In New Jersey, a document appointing someone to make health care decisions is typically called a proxy directive or a durable power of attorney for health care. Every power of attorney document should specify the powers the principal grants to the agent and the conditions under which they apply. Generally, the agent can only act on the principal’s behalf if the principal loses mental capacity, not before.
What Is Power of Attorney Abuse?
Abuse of power of attorney occurs when an agent uses their position beyond the authority granted or acts against the principal’s interests or instructions. What counts as misuse depends partly on the document. An agent authorized to pay household bills, for instance, does not gain permission to take the principal’s savings.
Misuse can affect finances, property, and care. An agent might transfer money to themselves, sell a home for their own benefit, or fail to pay for the principal’s needs despite having access to funds. A health care representative might try to make decisions before their authority begins or disregard the patient’s stated treatment wishes when making decisions on their behalf.
What Are the Signs of Power of Attorney Abuse?
Possible warning signs include:
- Unexplained withdrawals, missing statements, or bills left unpaid despite available funds;
- Changes to ownership of accounts or property that your loved one did not expect;
- An agent who cannot explain a major transaction or resists sharing information with the principal; or
- Medical decisions that appear inconsistent with your loved one’s documented wishes or made while your loved one could still decide for themself.
The document, surrounding records, and your loved one’s own account, when they can give one, help distinguish proper agent actions from misuse of power.
How Do You Prove Power of Attorney Abuse?
To prove power of attorney abuse, you begin by comparing the authority granted in the power of attorney document with what the agent did. An elder law attorney can help investigate what occurred and compare that to the written terms of the document.
An attorney may first review the power of attorney and the timeline of events. They can identify when the agent’s authority began, if it has truly begun, what limits apply, and which actions call for investigation. They can then determine what evidence is available and how to seek records you cannot obtain yourself.
What Can You Do If You Suspect Abuse?
An elder law attorney can help you decide whether a situation justifies intervening and what needs attention first: an agent’s ongoing authority, a questionable decision, missing property, or your loved one’s immediate care. They can also explain which steps your loved one can take personally and which may require someone to act through a court.
Address the Agent’s Authority
If your loved one can make the necessary decisions, an attorney can help them consider revoking the power of attorney, appointing someone else, and telling banks or health care providers about the change. The steps depend on the type of document and the people or institutions that have relied on it.
Investigate the Harm and Seek a Remedy
An attorney can help obtain information, question an agent’s actions, and bring a matter to court when the evidence supports it. If an agent improperly took money or property, the attorney can evaluate how to remedy that harm.
For a disputed medical decision, an attorney can review the proxy directive and treatment instructions, help communicate the patient’s wishes to the care team, and assess whether court intervention is needed. The right response depends on the decision at issue and the patient’s condition.
Report Suspected Abuse
If a vulnerable adult lives in the community, you can contact your county’s Adult Protective Services (APS) office. For a resident of a long-term care facility, New Jersey’s Long-Term Care Ombudsman investigates reports of abuse, neglect, and elder financial exploitation. An attorney can help you identify the appropriate agency and provide a clear account of your concerns; you do not need to prove abuse before making a report. You can also report suspected criminal conduct to law enforcement.
What is the penalty for abuse of power of attorney? There is no single penalty. A court may require an agent who causes a financial loss to return property or pay for the harm. Conduct that constitutes theft or another crime may also lead to criminal charges, with penalties depending on the offense. Your attorney can help distinguish a breach of the agent’s responsibilities from conduct that may warrant a criminal investigation.
Speak with a New Jersey Elder Law Attorney
If you are concerned about decisions someone has made for your loved one, Willis Law Group can help you understand the agent’s authority, investigate the conduct, and choose a response that addresses your loved one’s needs. Contact us to arrange a personalized Initial Meeting at our Hackensack, Jersey City, Morristown, or Red Bank office. You can work with the same dedicated paralegal from your first call through the close of your matter.
Legal References Used to Inform This Page
To ensure the accuracy and clarity of this page, we referenced official legal and other resources during the content development process:
- Powers of attorney; durable powers of attorney, N.J. Stat. Ann. § 46:2B-8.2 (2000).
- New Jersey Department of Human Services, Adult Protective Services (APS).
- New Jersey Long-Term Care Ombudsman, Complaint Form.
