Shelby Review

Rep. Douglas Wozniak (R-Shelby Township) announced a plan that would make it more difficult to use powers of attorney in an exploitative manner in Michigan.

Power of attorney is the legal process that authorizes a designated person to act on behalf of an individual should they become unable to act in their own best interest. This is most commonly used by seniors and other vulnerable populations. Some organizations have been reluctant to accept power-of-attorney documents because of fraud potential. 

“Any situation where a power of attorney is necessary is going to be tough on a family -- but the circumstances get even more difficult when a financial institution or a health care provider refuses to accept the document as valid,” Wozniak told Michigan House Republicans. “The goal is to make sure people’s decisions are respected by third parties while creating more protections to ensure powers of attorney situations are not abused or exploited.”

Wozniak's legislation is inspired by the Uniform Power of Attorney Act, developed in 2006 and enacted in some fashion by at least 26 states. 

The proposed legislation, House Bills 5768-69, gives third-party establishments a means to prove the validity of power-of-attorney documents, requires that they do so in a timely manner and establishes clear guidelines for an agent to gift assets, change rights of survivorship, change a beneficiary designation and other tasks. The legislation also holds the attorney-in-fact liable for damages or loss to the principal for a breach of fiduciary duty. The plan has been sent to the House Judiciary Committee for review.

Strangers aren't the only ones to perpetrate scams against the elderly. Trusted family members and friends have also schemed to take advantage of an elderly person's declining health. There are some precautions that can be taken to avoid getting scammed.

According to Justia, do not grant a power of attorney to anyone who is untrustworthy, and do not release power of attorney unless it is absolutely necessary. If power of attorney is only needed temporarily, be sure to rescind it as soon as that time period is over. Be suspicious if the person who holds power of attorney begins to transfer property and other assets into their own name.