The ramifications for misusing the authority granted by a power of attorney can be severe, encompassing both civil and criminal penalties. Such misuse occurs when the agent, also known as the attorney-in-fact, acts in their own self-interest or contrary to the principal’s wishes and best interests, especially in financial and property matters. For instance, if an agent uses the principal’s funds to pay for personal expenses rather than for the principal’s care, this constitutes abuse.
The importance of upholding the fiduciary duty inherent in a power of attorney is paramount to protecting vulnerable individuals from financial exploitation. Historically, legal frameworks have been developed and refined to address these breaches of trust. The consequences serve as a deterrent and aim to provide restitution to the principal or their estate, ensuring accountability and fairness in these legally binding relationships.