A power of attorney (POA) is a powerful legal document that allows one person (the “agent”) to make decisions on behalf of another person (the “principal”). While it is meant to help in times of need, there are some situations in which a power of attorney can be challenged or overridden.
Understanding when this can happen is essential to protecting your rights and ensuring that your wishes are respected. I will walk you through the most common reasons and situations when a POA can be challenged, overridden, or revoked.
What is a power of attorney?
A power of attorney gives someone legal authority to act on your behalf. For example, if you are unable to make decisions due to illness or injury, a trusted person can manage your financial or medical affairs. It can be general (covering many areas of life) or limited (specific to one area, such as finances or healthcare).
A POA can be temporary or long-term, depending on your needs and the terms set out in the document. But while it is a powerful tool, there are rules and circumstances in which it can be questioned or revoked.
When can a power of attorney be challenged?
There are specific reasons why someone might challenge a POA. It is important to know that challenging a POA is not the same as simply disagreeing with the agent’s decision. In order to challenge a POA, you must prove that there is a legal reason to do so.
The principal was under duress or pressure
A common reason a POA might be challenged is if the principal was coerced or pressured into signing it. If someone was deceived, manipulated, or coerced into giving a POA, it is not valid. This is especially true if the principal is in a vulnerable position, such as under emotional distress or physical threat.
For example, if someone takes advantage of an elderly person and convinces them to sign a POA under false pretenses, this is a clear case of duress. In this situation, the person who was pressured can challenge the POA in court to have it invalidated.
Lack of Mental Capacity
Another reason a POA may be challenged is if the principal didn’t have the mental capacity to understand what they were signing at the time. To create a valid POA, the principal must fully understand the document and the powers they are granting. If they were mentally impaired (due to illness, disability, or any other reason), they may not have had the ability to make such decisions.
For example, someone with dementia or Alzheimer’s may not fully understand the implications of signing a POA. In such cases, the POA may be invalid or subject to challenge by family members or others involved in the principal’s care.
Fraudulent Actions or Forgery
If a POA is based on fraudulent actions, such as falsifying the principal’s signature or making false statements, it can easily be challenged in court. This might happen if someone forges the principal’s signature or creates a fake POA document to gain control over their assets or decisions.
In these situations, the POA is invalid, and the person who created it through fraud can face serious legal consequences.
The POA Is Outdated or Expired
A POA can be challenged if it is outdated or expired. Most powers of attorney are designed to be valid until the principal revokes them or until they pass away. However, if there is a specific time limit mentioned in the POA document (for example, “valid for one year”), then once that period is over, the POA may no longer be in effect. In such cases, the agent’s power can be revoked, and a new POA would need to be created.
The POA Was Not Properly Executed
For a POA to be legally binding, it must be properly executed according to state laws. This usually means the document needs to be signed by the principal, witnessed by at least one person, and sometimes notarized. If the POA was not signed correctly or did not meet the legal requirements, it can be challenged.
It’s important to follow all necessary legal steps when creating a POA to ensure its validity. Without proper execution, the POA could be deemed void.
Conflict of Interest or Abuse by the Agent
If the person holding the POA (the agent) is abusing their authority, the POA can be challenged. This includes situations where the agent is not acting in the best interest of the principal or is using the POA for personal gain.
For example, an agent who is financially benefiting from the principal’s assets for personal use (without permission) can be challenged in court. This may involve instances of financial abuse, manipulation, or even neglect, and the agent may be removed from their role.
How Can a Power of Attorney Be Overridden?
A POA can be overridden in several ways. Depending on the situation, someone might step in to change or revoke the authority granted by the POA.
1. Revocation by the Principal
The simplest way a POA can be overridden is by the principal themselves. If the principal is still mentally capable, they can revoke the POA at any time. To do this, the principal must notify the agent and anyone else involved (such as banks or healthcare providers) that the POA is no longer valid.
This is a straightforward process if the principal is still of sound mind and capable of making decisions. If the principal is unable to revoke the POA due to incapacity, someone else might need to take legal action.
2. Court Intervention
If there’s a dispute or suspicion of abuse, fraud, or incapacity, a court can intervene to override a POA. This is especially true in cases where the principal is mentally incapacitated and unable to revoke the document themselves.
A family member, healthcare provider, or other interested party can file a petition with the court to challenge the POA. If the court finds that the POA is being misused or that the principal was not mentally capable when they signed it, the court can override the POA and remove the agent.
3. A New Power of Attorney
In some cases, a new power of attorney can override an old one. If the principal wants to appoint a new agent or change the terms of the original POA, they can create a new one. The new POA will typically revoke the old one automatically, as long as it is clearly stated in the new document.
4. Death of the Principal
A POA is automatically void when the principal passes away. At that point, the agent no longer has any authority to act on the principal’s behalf. In this case, any decisions or actions made after the principal’s death by the agent are not valid.
5. Divorce or Separation
If the principal has appointed their spouse as their agent, the divorce or legal separation between them may invalidate the power of attorney, depending on the state law. In some states, a divorce automatically revokes any POA granted to a spouse, while in others, the principal may need to revoke the POA formally.
Conclusion
A power of attorney can be a useful tool, but it’s essential to understand when and how it can be challenged or overridden. If there is any doubt about the validity of a POA or if abuse is suspected, it’s critical to take legal action as soon as possible. The ability to revoke or challenge a POA helps protect your rights and ensures that decisions are made according to your best interests.
FAQ
Can a family member challenge a power of attorney?
Yes, a family member can challenge a POA if they believe the principal was coerced, lacked mental capacity, or if there’s evidence of abuse by the agent.
How do I revoke a power of attorney?
To revoke a POA, the principal should sign a formal revocation document and notify the agent and any relevant third parties (like banks or healthcare providers).
Can a power of attorney be overridden after the principal’s death?
No, a POA is automatically void when the principal passes away. The agent no longer has the authority to act on behalf of the deceased person.
Can a court override a power of attorney?
Yes, a court can override a POA if it finds that the principal was not mentally competent when signing it, or if the agent is abusing their powers.
Can a power of attorney be contested after it’s been signed?
Yes, a POA can be contested if there are concerns about fraud, lack of mental capacity, or if the principal was under duress at the time of signing.
