Power of Attorney Abuse

Granting authorization to the partner of joint property through a power of attorney provides considerable power over the property and finances. In the event, if the agent abused this power of attorney, then the principal can seek the help of a power of attorney lawyer in UAE. Here are some advice if the power of attorney abuse situation arises.

What is the Power of Attorney Abuse?

 Power of attorney abuse is the misusage of authority granted by a principal. This means intentionally taking an action or making a decision that’s not in the best interests of the principal. A common occurrence is that the agent spending the money of the principal for self without the principal’s permission. This can even include forging the name of the principal on the power of attorney or coercing someone in making a power of attorney against his or her wishes. 

A power of attorney regardless of its type isn’t subject to oversight from a third party and even the court. If the principal is no longer capable to monitor the agent’s action,  it makes it incredibly simple for agents to abuse the power of attorney. 

The Duty of the Agent to the Principal 

Just like being a trustee or the agent of a celebrity, the agent under the power of attorney takes on the legal duty in following the directives of the individual providing authority or power. This includes acting as a fiduciary in the event that the person is no longer able to provide directions. In general, this will mean the agent has to act responsibly and he or she has to be trustworthy. The agent also has to make decisions that are ONLY in the best interests of the principal. 

Though the agent is not getting paid, It is required to maintain accurate bookkeeping and banking record. The agent has to take into account the principal’s property and money. Even though every action is not closely monitored, the concerned people can demand to account if they suspect the power of attorney abuse. Take note, the agent is ONLY going to be accountable to the principal. The agent is not required to submit any reports to the principal’s family even when the principal is incapacitated.

Limiting a Power of Attorney

It’s not necessary for a lawyer to be present in the preparation of a power of attorney; however, having a lawyer around during this crucial process can greatly help avoid abuse of a power of attorney. A lawyer has enough experience in limiting the authority of an agent. A lawyer may also allow a third party to exercise oversight of the agent. 

Revoking a Power of Attorney 

If an agent has abused the powers provided, it can be stopped through the help of a lawyer who can revoke the power of attorney.

Take note: This may only be possible if the principal has legal capacity still. 

Legal Remedies for POA Abuse

The justice system ensures to prevent harm and to compensate those in the event the poa is abused. If there is actual Power of attorney abuse, legal remedies provided by UAE courts include the following:

  • Asking the court to order the agent to furnish an accounting on how the principal’s money has been spent;
  • Filing a lawsuit against the agent to undo the transactions by the agent; 
  • Filing a lawsuit for the misappropriation of the money or assets of the principal; or 
  • Asking the court in providing a declaration regarding the incapacitation of the principal and appointing a committee or guardian to make decisions for the principal or monitor the agent’s actions on the principal’s behalf. With the appointment of a guardian, the power of attorney may be canceled. 

Contact us today to discuss the remedies of power of attorney abuse in Dubai.