Power of Attorney Abuse in Ontario
Power of attorney abuse happens when the attorney uses their legal authority to benefit themselves rather than acting in the grantor’s best interests. This goes beyond honest mistakes: it’s deliberate misuse of power for personal advantage.
Red Flags of POA Abuse
Watch for these warning signs:
Financial red flags:
- Unexplained withdrawals or transfers from bank accounts
- Bills and expenses going unpaid despite available funds
- New joint accounts opened with the attorney
- Valuable items or property missing from the home
Behavioral red flags:
- The attorney prevents family from visiting or speaking with the grantor
- The attorney becomes defensive or angry when asked about finances
- The grantor expresses confusion about their financial situation
- The attorney refuses to provide financial records or accounting
Who Can Take Action?
The grantor themselves can revoke the power of attorney if they still have mental capacity and take legal action against the attorney.
Family members cannot directly override a power of attorney, but they can apply to court for guardianship if the grantor lacks capacity, or bring legal action on behalf of the grantor or their estate.
The Public Guardian and Trustee can investigate abuse allegations and take action to protect vulnerable adults.
Police can investigate if the abuse involves criminal conduct like fraud, theft, or forgery.
Legal Consequences
From an estate litigation perspective, a wide range of remedies may be available, including:
- The attorney must repay all misappropriated funds plus interest
- The attorney can be removed and replaced
- The court can order a full accounting of all financial transactions
- The attorney may have to pay the legal costs of the case
Steps to Take If You Suspect Abuse
- Document everything – Save all financial records you can access, photograph missing items, note dates and details of concerning incidents, and keep a written log of observations.
- Secure remaining assets – If the grantor has capacity, help them revoke the power of attorney immediately. Contact financial institutions to freeze accounts if necessary. Change locks if the attorney had access to the home.
- Request an accounting – Formally demand the attorney provide complete financial records showing all transactions since they took control.
- Report to authorities – Contact the Public Guardian and Trustee, file a police report if criminal activity occurred, and notify banks and investment firms of suspected abuse.
- Seek legal help – Consult an estates litigation lawyer who can apply for emergency court orders.
Contact Pinto Shekib LLP, Your Toronto Estate Litigation Lawyers
Our estates litigation lawyers help families investigate POA abuse, remove problematic attorneys, recover misappropriated funds, and pursue criminal charges when warranted.
Contact us at info@pintoshekib.ca or 416.901.9984.
