The story of the RAF veteran “betrayed” after appointing his financial adviser as his attorney brings home the careful thought you need to give to who you appoint.
A financial adviser might appear to be a good choice. Nevertheless, there can be the potential for a very clear conflict of interest between any financial adviser or investment manager and the donor.
So what about the family? The obvious choice is a son or daughter. It is pretty sobering that over 15% of attorneys abuse their position and take money from the very person they have committed to safeguard.
The number of cases I see of financial abuse and fraud are significant and growing. People want to know what they can do? Who do they report it to? Who investigates?
The reasons are often very run of the mill. The attorney slipped in to debt and just needed a “loan”. The issue often comes to light because of concern raised by another family member. The impact of resolving these issues can be considerable.
There are things you can do to minimise the risk. You can build safeguards into the Lasting Power of Attorney. The most important thing is to think long and hard about who you chose. A poor choice can be a recipe for disaster.