A Power of Attorney (POA) is probably one of the most dangerous documents one could ever sign. Yes. It is that serious. But don’t get me wrong. POAs are very useful and often times necessary documents to move your business forward. But these same documents can be abused; and in many cases, the person to whom you have given the power to act on your behalf (we call them Agents) knows exactly what he/she is doing.
First, what is a POA? It is a legal written instrument in which you name a person or an institution to act on your behalf in either specific situations (Special POA) or in any way that you could do yourself if you were present (General POA). A General POA is possibly the most dangerous power you can give to anyone. An Agent who gets a General POA can make almost any decision on your behalf which, once made, can become legally binding.
Recently, my client, Jane (not her real name) who is residing in the United States of America, informed me that she was returning to St. Vincent for a brief period and she wished for me to help her finally settle a land dispute that she had been fighting since 1997. As soon as we met, I realised that I was speaking with a victim, an elderly victim, who had put all her confidence in her daughter to handle her legal affairs and had been abused.
She explained that upon the instructions of her former lawyer, she gave her daughter a General POA to, primarily, represent her in the court case. Almost 20 years later and with no resolution of the court matter, Jane began investigating the status of her case and found that, among other things, the daughter had secured several large personal loans with Jane’s deed as security. One bank is now threatening to repossess Jane’s house.
Unfortunately, there are little or no safeguards against your POA being abused by your Agent – no court is going to monitor the use of a POA and there is no entity that supervises whether POAs are used properly. It is up to you who signed the POA to make sure it is used for your benefit and not in any way that deprives you of money or property wrongfully. If you are not able to monitor your Agent’s actions, then your Agent can often get away with a lot of wrongdoing.
For this reason, giving someone a POA should be done with extreme caution. It is usually said that if you cannot trust your Agent 1000%, then do not sign the document. If you are concerned that an Agent may be dishonest, then revoke the POA immediately. If it is that you must give someone POA, it is always best to give them a Special POA which will limit what they can or cannot do on your behalf. Most importantly, before you sign that POA, get proper legal advice, or you might end up worse than Jane!
Posted by Meisha S. Cruickshank. Meisha is a Barrister and Solicitor in St. Vincent and the Grenadines. She practices in the areas of Land and Property Law, Estate Planning and Family Law. You can reach her by phone at 784-451-5669 or email at meishacruickshank@gmail.com.
