“Power of attorney” is the phrase meaning the authority to an agent to act for another person in legal or financial affairs. You attorney will help you to prepare a legal document granting power of attorney, for example, to an adult child in case you become disabled and need to delegate the management of your affairs to a designated person or designated people. State law governs the granting of powers of attorney.
The North Carolina Uniform Power of Attorney Act (NCUPOAA), North Carolina’s new power of attorney law, went into effect on the first of January. The new law is NC’s attempt to counteract and curb abuses. It adopts the Uniform Power of Attorney Act drafted by the National Conference of Commissioners on Uniform State Laws, with some modifications for North Carolina.
Unfortunately, the legal power of attorney is subject to abuse by agents and businesses that assist agents, most frequently in cases of inheritance and estate law. The agent may act in a way that exceeds the authority granted by the power of attorney, misuse funds, make inappropriate gifts of the principal’s property, or execute transactions that benefit the agent and not the person whose interests the agent is supposed to represent (legalzoom.com). Abuse of the power of attorney is a crime.
According to prorolo.com news, the new Act provides more protections to address issues of abuse. “Of specific note, the Act requires the principal to expressly grant certain powers to the agent. Powers that require an express grant of authority include, but are not limited to, gift making, delegation of authority under the POA, and creating or changing rights of survivorship and/or beneficiary designation.”
Attorney Janice L. Davies, chair of the NC Bar Association Estate Planning and Fiduciary Law Section’s North Carolina Uniform Power of Attorney Act legislative subcommittee, told the North Carolina Lawyers Weekly: “The abuse or misuse of powers of attorney has been recognized as a serious problem,” Davies said. “The UPOAA intends to strike a balance by preserving the durable power of attorney as a private form of surrogate decision making while deterring use of the durable power of attorney as a tool for financial abuse of an incapacitated principal.”
Richard Manger, principal of Manger Law Firm, has extensive experience in wills and estates, litigation and settlements, with a focus on workers’ compensation and personal injury law. We are proud of the strong relationships of loyalty and trust we develop with our clients. We go above and beyond to achieve the best possible outcome in your case. You can contact Richard Manger via email at firstname.lastname@example.org, or by calling (336) 882-2000.