CPA has provided Durable Power of Attorney to my Friend and we have joint Accounts. What do we do?

Full question:

My friend's daughter, a CPA, now has supervision of my friend's SSI Disability payments and limited financial resources from past investments that have run out. My friend is 62 years old and on disability several years. The CPA has provided Durable Power of Attorney forms for my friend to sign. These forms suggest total control of my friend's finances, housing, properties, investments, health and more if my friend is disabled, which she is. The CPA has access to my friend's taxes (which the CPA) prepares, but will not release the paid tax forms to her daughter to receive available health beneifits. My friend and I share most of our bank accounts and financial dealings, which would be completely disrupted by the CPA's invasion of my friend's (and my) finances. The problem rests on the fact there is inheritance due my friend, but the source(s) are held secret by the CPA. SO! What term could be used rather than "disability" in the "Power of Attorney" forms to insure my friend or me would not be financially raped by the CPA? 

• Category: Power of Attorney
• Subcategory: Durable
• Date: 04/07/2025
• State: Illinois

Answer:

As we understand the question, a Daughter of a Friend of yours is a CPA and is handling a lot of matters for your Friend. You also maintain joint bank accounts with the Friend. The CPA wants your Friend to sign a POA. You ask "What term could be used rather than "disability" in the "Power of Attorney" forms to insure my friend or me would not be financially raped by the CPA?"

The term disability does not generally mean that the Friend is not mentally capable of managing her own affairs. If she is not mentally competent then she cannot a sign a POA anyway. If the disability is physical then the POA would allow the CPA to manage her affairs. The friend is only 62 and unless there is a mental issue can make her own decisions. 

You state that the CPA "will not release the paid tax forms to her daughter to receive available health benefits", but from reading the question it seems to say the CPA is the daughter. If there is another Daughter or the CPA is not your friends daughter then we misread the question.

The terms of a POA can be limited so that the powers are not so broad or can be limited in specific areas.  For example, it could state that she can only do x in regard to the joint bank accounts or only do x in regard to other property. But most people use broad durable power of attorney forms so even if limited it may be overlooked by the bank, etc.

It seems that you and your friend need to have a talk with the CPA about all of this and your Friend may need to execute an Authorization, authorizing you to inquire from the CPA about any and all financial matters relating to the Friend.

Hope this helps.