What Is Power of Attorney Abuse?

A Power of Attorney (POA) allows someone you trust (the agent or attorney-in-fact) to manage your financial or personal affairs if you can’t do so yourself. When used properly, it’s a valuable estate planning tool. But when misused, it can lead to financial exploitation, property loss, and emotional harm.

Power of Attorney abuse happens when the agent acts for their own benefit — not the principal’s. This kind of abuse can occur quietly, often within families, and can devastate a person’s life savings.

Common examples include:

  • Taking money from the principal’s accounts
  • Selling or transferring property without permission
  • Changing beneficiary designations
  • Denying family access to financial information
  • Coercing or manipulating a vulnerable person into signing a POA

North Carolina Law on Power of Attorney Abuse

The North Carolina Uniform Power of Attorney Act (N.C. Gen. Stat. § 32C) governs how agents must act. Under this law, an agent has a fiduciary duty — a legal obligation to act honestly, faithfully, and in the principal’s best interest.

An agent must:

  • Act in good faith
  • Follow the terms of the POA document
  • Keep accurate records
  • Avoid self-dealing or conflicts of interest
  • Preserve the principal’s estate plan

If an agent violates these duties, they can be removed, held liable for damages, and even prosecuted for financial abuse.

Warning Signs of Power of Attorney Abuse

Recognizing the warning signs early can prevent major losses. Watch for:

  • Unexplained withdrawals or missing funds
  • Sudden changes in bank accounts, deeds, or titles
  • Bills going unpaid despite adequate resources
  • The principal appearing isolated or confused about finances
  • An agent refusing to share account statements or documentation

If you suspect something is wrong, act immediately. Time is critical in protecting assets and evidence.

Legal Remedies for Power of Attorney Abuse in North Carolina

If you believe a Power of Attorney is being abused, you have several legal options:

  • Revoke the Power of Attorney: The principal can revoke the POA if they still have capacity.
  • Petition the court to remove the agent: Family members or interested parties can request that the court step in.
  • Demand an accounting: Under North Carolina law, you can compel the agent to disclose financial records and transactions.
  • File a civil lawsuit: Victims can seek recovery of stolen assets and damages.
  • Report the abuse: Contact Adult Protective Services or local law enforcement if elder exploitation is involved.

North Carolina courts take fiduciary misconduct seriously, especially when it involves seniors or vulnerable adults.

How to Prevent Power of Attorney Abuse

Prevention starts with careful planning. Here are some steps to protect yourself or a loved one:

  • Choose a trustworthy agent with a proven history of responsibility.
  • Define specific powers in the POA rather than granting broad, unlimited authority.
  • Require regular accountings or appoint co-agents for oversight.
  • Keep family members informed to promote transparency.
  • Consult an experienced estate planning attorney to ensure your POA complies with North Carolina law.

A well-crafted Power of Attorney can be one of the safest and most effective estate planning tools — when done right.

Final Thoughts

Power of Attorney abuse is a serious issue that can threaten your financial security and peace of mind. Fortunately, North Carolina law provides strong remedies to stop abuse and hold agents accountable.

If you suspect financial exploitation or misuse of a Power of Attorney, Lohr Law Firm can help. We assist families across North Carolina with estate planning, probate disputes, and financial abuse cases, ensuring that every client’s rights are protected.

Contact Lohr Law Firm today at (919)348-9211 or evan@lohrnc.com for a confidential consultation about Power of Attorney abuse or estate protection in North Carolina.