What To Do If Your Sibling Is Misusing Power Of Attorney Over A Parent

When a sibling misuses a power of attorney, the financial and legal consequences for a parent can be severe. Power of attorney abuse is a breach of fiduciary duty that requires immediate attention and, in many cases, legal intervention. In this article, we discuss the warning signs of abuse, the legal options available to challenge misconduct, and the steps families can take to protect a parent’s assets.

What Rights Do I Have If I Believe My Parent Is Being Financially Exploited?

Your rights depend on who is committing the exploitation and under what authority. If the individual is acting under a power of attorney while your parent is alive, or as a personal representative after death, you may file a complaint in probate court or circuit court for breach of fiduciary duty.

If the person exploiting your parent has no legal authority, such as a friend or caretaker without a power of attorney, law enforcement should be contacted to investigate. If necessary, civil claims for wrongful conversion or theft may also be pursued.

What Are Some Warning Signs That A Sibling Is Abusing Power Of Attorney?

Common warning signs include the sale of a parent’s property under a power of attorney without any prior indication that the parent intended to sell. Unexplained withdrawals or missing funds from bank or savings accounts are another red flag.

A sudden and unexplained improvement in the sibling’s lifestyle may also indicate misuse of the parent’s assets, particularly when it involves expensive purchases or spending beyond the sibling’s prior means.

What’s The Difference Between Financial Abuse And Poor Decision-Making?

The distinction here often turns on who benefits from the decisions being made. When actions taken under a power of attorney primarily benefit the agent rather than the parent, that conduct strongly suggests abuse. By contrast, decisions that result in lower returns or less income but are clearly intended to serve the parent’s needs generally reflect poor financial judgment rather than exploitation.

Can I Legally Challenge An Agent’s Authority Or Force An Accounting?

An agent acting under a power of attorney owes a fiduciary duty of the highest level to act solely in the best interests of the parent. You may file a court action for breach of fiduciary duty and seek an accounting of how funds have been used. Claims for wrongful conversion may also be brought when the agent has taken or used funds for personal purposes.

Can An Attorney Review The Existing POA And Help Me Assess Whether It’s Being Misused?

An attorney can review the power of attorney to determine the scope of authority granted and identify what actions are permitted or prohibited under the document. Determining whether misuse has occurred requires a detailed review of financial transactions, asset transfers, and the surrounding circumstances. That assessment depends on factual evidence rather than the document alone.

What Steps Should I Take To Protect My Parent Legally And Financially?

If abuse is suspected, your parent should revoke the existing power of attorney immediately to terminate the agent’s authority. A new power of attorney can then be executed in favor of a trusted individual.

In many cases, establishing a family trust and transferring assets into the trust provides stronger protection. Assets held in trust are not accessible through a power of attorney, significantly reducing the risk of further financial exploitation.

Still Have Questions? Ready To Get Started?

For more information on power of attorney abuse, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.