How to Avoid Financial Exploitation

One of the more frequent calls we get go something like this:

Me: “Good morning, Joplin Elder Law, how can I help you?”

Caller: “Hi, I need to get power of attorney for my (insert loved one’s relationship here.)”

Me: “Can I speak to your (loved one) to get their permission to speak to you on their behalf?”

Caller: “No, they are (insert explanation as to why they can no longer speak on their own behalf.)”

Me: “I’m afraid a Power of Attorney is no longer an option. If you want to act on behalf of your (loved one), the only option would be as a guardian and / or conservator.”

Our primary concern as an Elder Law firm is the protection of the person who can no longer speak for themselves. Not only is that the right thing as an individual, it is in the ethics laws that Missouri attorneys must follow.

Aside from scam phone calls and emails, most exploitation of the elderly comes from someone that they know. Sadly, it is often family, “friends” or caregivers that take advantage of seniors. It is our duty to look for signs of exploitation whenever anyone comes to us for Power of Attorney or Guardianship over someone else.

So what is the difference between Power of Attorney and Guardianship? The main difference is court supervision:

• A power of attorney is signed while the individual is still (mentally or legally) competent; the individual willingly gives someone powers over them.
• A guardianship is conducted when someone is not competent; the individual does not willingly give someone powers over them.

Because the individual in a guardianship is not willingly giving someone those powers, a court supervises the process to ensure their welfare. State laws require the guardian to notify certain individuals (including the ward) of the guardianship case, to propose a plan of care, to file regular reports on the status of the ward’s financial and/or medical affairs, etc.

In short, a guardianship is much more work than a power of attorney, and, as a result, it is much more expensive. A Durable Power of Attorney may be a few hundred dollars, while a guardianship can reach thousands of dollars in attorney’s fees, plus court costs and other expenses.

Everyone over the age of 18 should have Powers of Attorney in place to help avoid the potential need for Guardianship. It is especially important for seniors to help avoid exploitation and financial abuse.

Hopefully, you or your loved ones will never need a Power of Attorney or Guardianship. If you do, we would much rather help you with Powers of Attorney before it’s too late, and avoid the expense and hassle of the Guardianship process.

If you are already in a situation where you believe a loved one needs guardianship, Joplin Elder Law can help. You will need to have a letter of incapacity from your loved one’s physician unless you have already been appointed as their agent in a Durable Power of Attorney.

If you want to save your family from making the phone call above and spending thousands of dollars on the guardianship process, Joplin Elder Law can help with that too.

Call us or fill out the form below to schedule a free consultation.