The standard power of attorney is a basic part of any estate plan. Unfortunately, as a recent article points out, it may also become a license to steal. The power of attorney is a legal document that allows an agent to make legal and financial decisions on behalf the principal if and when he or she unable to make the decisions. According to the MetLife Mature Market Institute, annual losses from financial abuse are currently at $2.9 billion. Experts believe this number will continue to climb. The first step towards avoiding financial abuse from a future agent is selecting an agent that you feel you can trust. This necessarily requires selecting a power of attorney when you are still mentally able to make these decisions without being unduly influenced by another person. Further steps a person can take against potential abuse include revisiting their power of attorney document annually, to ensure that they still feel that they can trust their named agent. If a loved one’s power of attorney has taken over for them, contact the relevant financial institutions and ask them to alert you of any changes in the account. This may alert you to potential abuse early on. If you discover that an agent designated under a power of attorney for a loved one has abused their position, contact an attorney immediately. If you believe a loved one has been the victim of financial abuse, or for any other estate planning questions, call us at 818.956.9200.