Search Site
Menu

Exploitation Protections in your Legal Documents

Today Your Legal Corner will discuss ” Exploitation Protections in your Legal Documents.”

We spend most of our lives planning and saving for our retirement years. If we are lucky and God willing, we may actually get to enjoy our golden years. In order to safeguard your money, consider taking some important steps to ensure your funds are protected.

By 2030, the number of Americans aged 65 and older will more than double to 71 million, roughly 20 percent of the U.S. population. This dramatic increase in the aging population will also lead to a greater number of potential targets of financial exploitation.

A very important document in your estate plan is your power of attorney. A power of attorney is written authorization to act on another’s behalf on legal or financial matters. It is beneficial because it allows for someone to act on your behalf should you suffer a stroke or other medical condition that renders you incompetent. They have a fiduciary duty meaning they must act in your best interest.

Prohibition against gifting

It is better to not have a power of attorney than to have one that is poorly drafted. A poorly drafted document can be a license to steal. No matter how much you trust the individual you authorize to act on your behalf, you must ensure you are protected. Your power of attorney should include express, specific language prohibiting your representative from gifting to him or her self as well as others.

Unfortunately, many elderly people are unaware of this issue and execute powers of attorney unknowingly granting their representative the power to gift. Often, this language in the power of attorney is only discovered after money is missing. While they are supposed to be acting in your best interest, unfortunately language in your power of attorney permitting gifting allows your representative to misuse their authority. This obviously violates their fiduciary duty unless you expressly intend to give them this authority.

Documentation

Typically, a power of attorney has the responsibility to pay bills, oversee bank accounts and pay for things that are needed by the elderly person. It is important for the representative not to commingle personal funds with their fiduciary funds.   Make a list of your money, property and debts. Require your representative to keep a detailed list of everything received or spent on your behalf.

No matter how small the expense, require your representative to provide receipts for any transactions conducted on your behalf.   A power of attorney should not pay expenses with cash. Further, your debit card should only be used by you-not your power of attorney. These requirements should also be expressly stated in the power of attorney.

Accounting

As mentioned, in a power of attorney, the representative is duty bound to act in the best interest of the elderly person. The representative can be required to disclose a complete accounting of all transactions completed pursuant to the power of attorney. If your representative will not provide an accounting, you may file an application with the court for a formal accounting. The burden is on the representative to prove they properly disposed of all the funds.

Till next time, God bless, keep smiling, when Your Legal Corner will discuss “Living Wills.”

Victoria M. Dalton is an attorney with the law offices of Hoffman DiMuzio.

Send questions, or comments to Victoria at [email protected]. Or call 856-845-8243.

Please note that Your Legal Corner was created to provide educational articles about the law and is not legal advice. 

Speak to a proven New Jersey attorney now
Call 856.238.5183 or click to schedule your consultation
  • 5-Star Review

    Posted On Lawyers.com

    "We came to the office upset, concerned and profoundly unsure of what to do. Mr. Hoffman sat with us, explained options, reassured us and told us he would be there for us. He more than delivered on that commitment. If you are considering a legal firm, go no further, Hoffman-DiMuzio needs to be your choice."

    SEE ALL REVIEWS
  • 5-Star Review

    Posted On Lawyers.com

    " Joe Hoffman is amazing. We cannot say enough about how well we were treated from the moment we sat down until the positive resolution! Stellar customer experience!"


    SEE ALL REVIEWS
  • 5-Star Review

    By Renee Zagarella

    "Wonderful, knowledgeable, kind, and informative! Within days following my free consultation, I was provided with an overview of my appointment with helpful information about my case. I truly appreciate the recommendation I was given at this firm."

    SEE ALL REVIEWS
  • 5-Star Review

    By Anita Campana

    "I was so very impressed with Hoffman DiMuzio from the moment I walked in. Everyone I had come across was so professional and courteous."


    SEE ALL REVIEWS
  • 5-Star Review

    By Mike W

    "Hoffman DiMuzio is a top notch firm. Their attorneys and staff are extremely knowledgeable and go above and beyond for you. I recommend them to everyone in need of legal service."

    SEE ALL REVIEWS
  • 5-Star Review

    By Harry McCormick

    When my significant other was falsely accused of committing a crime, there was only one place to turn. that place was hoffman dimuzio.

    SEE ALL REVIEWS
  • 5-Star Review

    Posted On Google

    "Joe Hoffman Jr took on our case and fought tooth and nail for us. Exposing the truth and serving justice for us, we felt completely vindicated. For any legal matter, criminal, traffic or otherwise, they gained two very satisfied life long customers! Thank you Mr Hoffman!"

    SEE ALL REVIEWS
Joseph J.  Hoffman, Jr. Attorney Photo
Joseph J. Hoffman, Jr.
Senior Partner

For more than 40 years, Mr. Hoffman has protected the interest of his clients through diligence and hard work on legal matters, both large and small. An honors graduate of Rutgers University Law School and a native of Gloucester County, Mr. Hoffman has won numerous accolades for excellence in the practice of law.

Kenneth A. DiMuzio, Sr. Attorney Photo
Kenneth A. DiMuzio, Sr.
Senior Partner

An attorney with over 45 years of professional experience, Mr. DiMuzio concentrates his practice on personal injury and workers’ compensation matters. A graduate of Georgetown University Law School and a native of Gloucester County, Mr. DiMuzio has been honored time and again for his professionalism and ethics in the practice of law.

Ernest L.  Alvino, Jr. Attorney Photo
Ernest L. Alvino, Jr.
Attorney

Ernest L. Alvino, Jr. About Ernest L. Alvino, Jr. concentrates his practice in the area of workplace injuries; construction accidents; product injuries; trucking accidents; auto injuries; medical negligence and crime victim advocacy. Ernie is a lifelong Gloucester County resident, living in Mullica Hill with his wife and children. Ernie worked his way through school as…

Anooshay Asim Attorney Photo
Anooshay Asim
Attorney

About Anooshay Asim Ms. Anooshay Asim is a family law attorney with The Law Offices of Hoffman DiMuzio. Her practice is focused on divorce and child custody matters. Prior to joining Hoffman DiMuzio, Ms. Asim was an avid traveler and had even lived in numerous cities across the United States as well as internationally. Her…

Jeremiah J. Atkins Attorney Photo
Jeremiah J. Atkins
Attorney

Jeremiah J. Atkins About Mr. Atkins joined the firm of Hoffman DiMuzio in February 2010. Mr. Atkins’ practice covers a wide variety of employment-related matters before New Jersey State and Federal courts and administrative agencies, with a focus on discrimination, retaliation, sexual harassment, family leave and whistleblowing claims. Mr. Atkins also regularly represents the interests…

  • Imagine... One law firm, for life.


    New Jersey attorneys for all legal matters

    For all life's stages. For all South Jersey.

Six convenient locations


We'll meet at the office nearest you

  • Franklinville
    Lawyers Near Franklinville
  • Turnersville
    Lawyers Near Turnersville
  • Mullica Hill
    Lawyers Near Mullica Hill
  • Woodbury
    Lawyers Near Woodbury
  • Sewell
    Lawyers Near Sewell
  • Philadelphia
    Philadelphia Office
  • /AV Preeminent
    Top Attorneys NJ
    Best Lawyer Award
    Best Trial Lawyers
  • Best Lawyer Award
  • Best Attorneys NJ
  • Top Law Firm Near Me Award
  • Top NJ Lawyers
Take action now by filling out the form below

Submitting this form does not create an attorney-client relationship, but a lawyer from our firm will contact you as soon as possible.

Quick Contact Form