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:
- State: Illinois
Answer:
The term 'disability' in a Power of Attorney (POA) does not imply that your friend is unable to manage her own affairs unless she is mentally incompetent. If she is mentally competent, she can make her own decisions. If her disability is physical, the POA would allow the CPA to manage her affairs.
You mentioned that the CPA is your friend's daughter, but it seems there may be confusion regarding the relationship. If the CPA is not her daughter, please clarify.
POA terms can be limited to restrict the powers granted. For example, the POA could specify that the CPA can only manage certain aspects of the finances, such as joint bank accounts or specific properties. However, many people use broad POA forms, which could lead to unintended consequences.
It may be beneficial for you and your friend to discuss these concerns with the CPA. Your friend might also consider executing an authorization that allows you to inquire about her financial matters with the CPA.
Hope this helps.
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