A Power of Attorney NIGHTMARE

By Brother Alvin H. Blitz, Esq. Chief Development Officer, Masonic Villages

Several years ago, I met with a couple in Yardley, PA, who wanted to support the Masonic Children’s Home. Jeff and Betty did not have any children, but they liked the idea that they could leave their estate upon the passing of the surviving spouse, to provide for scholarships and other needs for the children at the children’s home. I met with them and their attorney, Sam, to go over an estate plan to carry out their wishes. Sadly, Betty passed away from cancer a couple years later, and Jeff developed macular degeneration but remained in his home as his vision severely declined.

Jeff had someone he knew through a friend, named Sally, who began delivering meals to him since he was homebound. A friendly relationship developed, and Jeff asked Sally if she wanted to be his agent under his power of attorney.

Sally agreed. When I visited with Jeff, he indicated Sally was handling his financial affairs, and she had another attorney she knew draw up the document for Jeff’s signature. I was concerned about how quickly Sally was taking over Jeff’s financial affairs, so I called Jeff’s attorney to meet with Jeff and me. When Sam heard about what was happening, he warned Jeff that Sally may be taking advantage of him, but Jeff dismissed his concerns.

Subsequently, Sally and her attorney friend met with Jeff to draw up a new Will giving Sally a $100,000 bequest and naming her executor of his estate. When I met with Jeff again, he told me about the new Will and insisted that Sally deserved his support. Several weeks later, Jeff confided to me that he had made several gifts to Sally to support her and had given her money for a down payment to buy a new home. I was now alarmed that this had become overreaching on Sally’s part and called Sam to intercede in the situation.

Sam met with Jeff and told him to call him when Sally’s attorney visited to sign the new Will. He also asked Jeff to reach out to his stepson in New Jersey for help. Jeff reluctantly agreed. A week later, Sally called Jeff to tell him she was coming by with her attorney and the new Will. Jeff called Sam to let him know of the meeting, and Sam arrived in time to confront Sally and her attorney about the changed document. Jeff then realized that Sam meant him well, and Sally was told not to come back again. The stepson was named Jeff’s new agent. Jeff passed away several weeks later, leaving $4.3 million to the Masonic Children’s Home, as intended.

Why do I tell this story? Because it is true and can happen to any one of us as we age and our mental capacity and health decline. Jeff was afraid of losing Sally, and she knew it and took advantage of the situation. Thank goodness Jeff had a diligent attorney who interceded on his behalf, or the whole estate may have gone to Sally.

What should you consider to prevent this from happening to you?

Make sure you have a good attorney.

Avoid selecting a caregiver who you depend on as your financial agent.

Insist that your agent report to your attorney or any other independent advisor on a regular basis about the activity of your financial affairs.

If possible, only give access by your agent to your checking account and require that your agent ask your financial advisor for any additional funds, as needed, so he or she is aware of any unusual activity.

Keep your financial power of attorney with your attorney, and make sure he or she has control over when it is used by your agent.

If your agent insists on handling your financial affairs in secrecy, never let him or her serve.