What happens if there is a power of attorney dispute

A power of attorney is a person designated to act on behalf of another. For example, a power of attorney document could give someone financial power over another person, or the right to make medical decisions on their behalf.

It is a serious decision that should not be taken lightly. Most people who assign a POA choose a trusted family member, such as an adult child. However, this can sometimes cause conflict between family members, especially if the POA does not take their responsibilities seriously.

At Hardie Alcozer, we can help you navigate assigning a POA and any disputes that might arise. We use mediation to help families resolve their issues, and as a last resort, we are also prepared to initiate litigation proceedings in probate court if a POA is abusing their power.

We believe in a personalized approach to the attorney-client relationship. We will take the time to understand you and your goals so that we can support you in the best way possible.

Find out how our law firm can help by calling (512) 374-4922.

Power of Attorney Terminology

Before we delve into what happens when there is a power of attorney dispute, it is important to understand some terminology.

The Agent - The agent is the power of attorney who has certain decision-making powers for the principal.
The Principal - The principal is the person who requires a power of attorney.

Settling A Power of Attorney Dispute

If you want to challenge the decisions made by a power of attorney, or you are being challenged about the decisions you are making as a POA, you should seek representation from an attorney.

At Hardie Alcozer, we will first look to mediation to solve any disputes. We will directly address concerns and open up clear lines of communication to prevent future conflicts. If this is not viable, then we are prepared to defend or prosecute in court.

We understand the importance of protecting family relationships wherever possible while also prioritizing the protection of the rights of the principal.

This is a complex and technical area of Texas law, and it is important that you have support from an attorney who has extensive experience in both mediation and probate court. That's where we come in. We will help you work through your dispute while minimizing the stress you face.

Potential Problems Arising From Joint POAs

Taking control of someone's medical and financial decisions is a big responsibility, and it is common for family members to feel hurt if they are not chosen for the job.

Some people decide to share the responsibilities to ease the burden and prevent arguments. For example, someone may appoint one person to be their medical POA and another to be their financial POA.

However, this in itself can cause problems, as the two parties will need to work together. For example, the person with medical powers must agree with the financial POA regarding long-term health care plans.

Another option is to name co-agents in the POA document. This gives more than one person decision-making powers. They will need to both agree on key issues, which in itself can cause disputes.

Potential Problems That Arise When The POA is Not The Main Caregiver

It is common for the POA to also be the primary caregiver, however, when they are not, it often leads to disputes.

For example, when one person cares for their elderly parent on a daily basis, but the other sibling has legal authority over medical and financial decisions it can bread a lot of resentment. Especially if the main caregiver disagrees with the decisions their sibling is making.

A common dispute is when the primary caregiver sees a need to put their parent into a nursing home, but the POA does not believe it is necessary, perhaps because they do not understand their parents' growing needs.

These types of disputes are highly emotional, and it is essential that you have guidance from someone who takes the time to get to know your family dynamics. A good power of attorney lawyer will work to resolve any rivalries, while still ensuring that the rights of the agent are protected.

Common POA Disputes

Even if the assigning of the POA went smoothly, that doesn't mean that issues won't arise later down the line.

When people disagree about the decisions of the POA, it can cause a lot of stress and legal challenges. It is essential that you have support from an experienced attorney.

Disputes Over The POA Document

When someone assigns a POA, they must be mentally competent to make that decision. If they are not capable of understanding the decision or they were under undue influence, then the POA document will not be legally valid.

If you believe that your POA document or that of a loved one is invalid, then it is essential that you seek guidance from an attorney.

However, if accusations are rooted in jealousy or anything other than concern for ethical practices, then the family will be put through a long, stressful, and potentially expensive investigation that only serves to create more conflict.

Sibling Rivalry

Feuds between siblings can lead to serious disputes. When adult children don't trust the person named POA, they may be constantly questioning them, which can make it very difficult for the POA to carry out their responsibilities. It can also place a lot of stress on the principal themselves.

Financial Exploitation

Inheritance can be a big motivator for sibling rivalries. For example, siblings may not agree with putting an elderly parent in a nursing home because it will reduce their inheritance, even if it is the best thing for them.

An even more serious situation is where the POA responsible for financial decisions is accused of mismanaging funds. These cases can quickly escalate and end up in probate court. When a POA misuses their authority, then it is essential that you hold them accountable for power of attorney abuse, and seek legal guardianship of your loved one.

A final example of a financial dispute is where the agent seeks payment for their time and services. A POA document may include compensation for the agent, which they can sometimes recoup from the principal's estate after they pass. However, other parties may not think it fair even if the agent put in a lot of time and dedication to their role.

Not Acting in The Best Interests of The Principal

The POA has a legal responsibility to act in the best interests of the principal when it comes to making medical and financial decisions. They must also follow the principal's wishes if they have the mental capacity to make decisions.

If the agent does not follow the principal's wishes, then they can be sued. This includes any decisions made in a living will while the principal had the capacity to make it.

For example, if the principal made a living will stating that certain life-sustaining measures should not be used, such as withdrawing life support, then this must be adhered to. Even a medical POA cannot override the stipulations of a living will.

When Does Power of Attorney End?

A power of attorney will be ended in some circumstances, which will mean that the principal no longer has the legal authority to act on behalf of the principal. If they do, then they could face legal repercussions.

POA ends if:

If the principal divorces and their ex-spouse was their POA, then the court may terminate the agreement unless otherwise specified.
The agent decides to end the agreement.
If there is an end date specified in the POA document.
The agent or principal dies.
The principal becomes mentally incompetent (unless the agent is a durable POA).
If the principal becomes mentally incompetent.

Keeping Power of Attorney Up To Date

One way to avoid disputes is to keep the POA up to date. The principal has a right to revoke or limit the agent's authority at any time without explanation unless they become medically incapacitated and their POA has durable power.

If you experience significant life changes, then you may want to consider updating a POA document. You can make changes to the powers given or who they are given to. We recommend you review it every 3-5 years to make sure everything is in order.

An attorney can guide you through any changes and ensure that everything is in order.

The Process for Assigning Power of Attorney?

A power of attorney lawyer at Hardie Alcozer can guide you through every step of the process. We ensure that your rights are protected and we will take the time to understand your situation and work to limit the possibility of any disputes. The key steps will be:

Deciding on the type of POA you require.
Choosing an agent.
Filling out the POA forms.
Signing the POA document in the presence of a notary public.
Giving copies of your documents to the agents and any other important parties such as your bank or doctor.