Can a Power of Attorney Be Challenged?
A power of attorney is a tool for a person to use to help oversee their health or assets as they age or face health issues. The person, or principal, who enlists a power of attorney can revoke it at any time, and the different power of attorney designations can expire at different times. When choosing a power of attorney to act as your agent, the assumption is that they will be trustworthy and carry out your wishes to the best of their ability. This is not always the case, however, and sometimes things do not work out the way they should. What happens then? Can a power of attorney be challenged?
What is a Power of Attorney?
First, it is important to know what a power of attorney is. In general, a power of attorney is a legal document that allocates the right to make certain decisions on another’s behalf. It is an important document that appoints an “agent” or “attorney-in-fact.” The grantor retains the right to make decisions on their own. A power of attorney can be limited in scope to making either financial or health care decisions on the individual’s behalf.
Challenging a Power of Attorney
So, can it be challenged? The answer is yes; a power of attorney can be legally challenged. However, it is not easy to do and must be done through court. Essentially, a third-party challenge of a power of attorney involves requesting a formal contest in court unless, of course, the agent decides to resign from the position.
Sometimes, issues arise in a power of attorney situation where one sibling does not agree with how another sibling is carrying out power of attorney duties. There are ways to mitigate conflicts before they come up. For instance, a principal may want to consider naming co-agents in the power of attorney document. When taking this route, it is important to spell out clear, separate duties, or it could cause more trouble than it is worth. A principal can also avoid having family serve in the role altogether if they envision trouble down the road.
In cases where the power of attorney is challenged in court, the third-party challenging it will have to prove that the original document was filled out while the principal did not have the capacity to do so.For instance, if the principal put a power of attorney in place while suffering from Alzheimer’s disease, mental illness or dementia, there may be grounds to revoke it through petitioning the court. However, the court is going to need a good reason to revoke the power of attorney.
There may also be specific language requirements in the power of attorney that, if not met, may prove the document invalid. Notarization or witness issues may also present themselves and could be challenged in court. Other instances that may be challenged in court, even if all the other requirements are fulfilled, are fraud, duress, and undue influence. There are scenarios involving the agent stealing from the principal, mismanaging the principal’s assets, or completely ignoring the needs of the principal that can justify a challenge if there is enough evidence.
Contact an Estate Planning Attorney
If you are considering having a power of attorney drafted for yourself, contact the estate planning lawyers at The Mattar Firm today. We can answer any of your questions and educate you on the topic so that you can make the decisions that best fit your situation. Call 844-444-4444.