Red Flags and Protective Measures for Principals
A Durable Power of Attorney (DPOA) gives someone — your “agent” — immense control over your finances and property. It’s meant to protect you when you can’t manage your own affairs. But that same authority can be easily misused. Once signed, a DPOA gives the agent immediate access to your accounts, investments, and even your home title. If the wrong person takes advantage, the damage can be devastating — and often irreversible.
Abuse of power of attorney isn’t rare. In Florida, elder financial exploitation cases have risen sharply, with many involving a trusted family member or caregiver misusing a DPOA. The good news? There are clear warning signs — if you know what to look for and act fast.
Understanding How Abuse Happens
When someone abuses a DPOA, they use the authority granted to them for their own benefit, not yours. This could mean stealing money, transferring assets, or making unauthorized decisions that drain your estate.
Because a DPOA can be broad and take effect immediately, abuse often goes unnoticed until significant damage is done. Agents might rationalize their actions (“I’m just borrowing it,” “They’d want me to have this”) — but legally, these are forms of financial exploitation and potentially theft under Florida law.
Common Warning Signs of DPOA Abuse
1. Sudden Financial Changes
- Unexplained withdrawals or transfers from your bank accounts
- New credit cards or loans opened in your name
- Investments sold without your knowledge or approval
- Missing valuables, property titles, or personal documents
Example:
Luis appointed his nephew under a DPOA while in rehab after surgery. Within weeks, his retirement fund was nearly empty — drained through “family support” checks his nephew wrote to himself.
2. Restricted Access or Isolation
If your agent suddenly limits who can contact you, screens your calls, or discourages visits from friends or relatives, that’s a major red flag. Isolation is a common tactic used by those trying to hide financial misconduct.
3. Unpaid Bills or Suspended Services
You may notice late notices, unpaid utilities, or lapses in insurance despite having enough funds. A trustworthy agent ensures bills are paid — not ignored.
4. Lifestyle Changes in the Agent
If your agent suddenly upgrades their lifestyle — new car, expensive purchases, or trips — while managing your money, take notice. This could be a sign they’re using your funds for personal gain.
5. Refusal to Share Records
A transparent agent should willingly provide account statements, receipts, and transaction records. Evasive answers or claims that “you wouldn’t understand” are unacceptable. Under Florida Statute §709.2116, you have the right to demand a formal accounting from your agent at any time.
How to Protect Yourself
1. Choose the Right Agent — Not Just the Closest Person
Many people name a family member out of habit or guilt. Don’t. Choose someone financially responsible, organized, and trustworthy. If necessary, appoint a professional fiduciary or attorney who’s legally bound to act in your best interest.
2. Limit the Powers You Grant
You don’t have to give your agent full control. Limit authority to specific actions — like paying bills or managing one account. Avoid blanket language like “all financial matters” unless absolutely necessary.
Pro Tip:
Under Florida law, certain powers — such as gifting assets or changing beneficiary designations — must be specifically initialed by you. Never initial anything you don’t fully understand.
3. Require Oversight and Dual Authorization
You can structure your DPOA to require two signatures for major decisions, such as selling property or moving large sums. Another option: appoint a monitor, someone authorized to review records and ensure the agent acts properly.
4. Keep Copies with a Neutral Party
Provide copies of your DPOA to your attorney, accountant, or a trusted friend. If someone notices irregular activity, they’ll have documentation to step in quickly.
5. Stay Involved While You Can
Even if you’ve delegated authority, stay informed. Review bank statements regularly. Ask questions. The more alert you are, the harder it is for anyone to take advantage.
If You Suspect Abuse
Don’t wait for proof — take action immediately. Financial exploitation can escalate fast. Here’s what to do:
- Revoke the DPOA.
If you’re still competent, you can revoke the agent’s authority at any time. Prepare a written revocation, have it notarized, and deliver it to all relevant institutions. - Notify Financial Institutions.
Tell your banks and brokers in writing that your former agent no longer has authority. Ask for account freezes or fraud monitoring if necessary. - Contact an Attorney.
In Florida, an elder law or estate attorney can help you file for an injunction or petition the court to remove the agent under §709.2116. - Involve Law Enforcement or Adult Protective Services.
Financial exploitation of an elderly or disabled adult is a felony in Florida. Reporting abuse can prevent further harm — not just to you, but to others.
Real-World Example
A Miami retiree named Elena discovered her nephew — her appointed agent — had transferred $80,000 from her account “to help family.” She contacted an attorney, who immediately filed to revoke the DPOA and demanded a full accounting. The court ordered restitution, but most of the money was already gone.
The lesson? Once funds are misused, recovery is difficult. Prevention and early action are your strongest defenses.
Takeaways
- DPOA abuse is one of the most common forms of financial exploitation among seniors.
- Watch for red flags: secrecy, missing money, unpaid bills, or isolation.
- You can and should limit your agent’s powers and require oversight.
- Always keep records and copies accessible to someone you trust.
- If you suspect abuse, act fast — revoke authority, contact your bank, and speak with a Florida attorney.
Empowerment begins with vigilance. A Durable Power of Attorney should safeguard your future, not endanger it. Choosing wisely and setting safeguards today can protect everything you’ve worked for tomorrow.
