Power of Attorney

For Immediate Release
December 3, 2007
For More Information, contact:
Chris Gaal, Office of the Monroe County Prosecuting Attorney, 349-2670

Video Seeks To Prevent Financial Exploitation of Elderly

Bloomington, IN – “Every year people turn over the right to manage their own financial affairs through power of attorney documents, and every year we see people not following the rules and violating that relationship of trust,” says Monroe County Prosecuting Attorney Chris Gaal in a public educational video produced by the Elder Crimes Task Force created by his office.

The video entitled “Power of Attorney, What You Need to Know,” was made in cooperation with Indiana Legal Services and Bloomington Hospital as a crime prevention effort. The video shows Gaal and others providing legal information in response to questions posed by members of the public. “By making this video and educating people about the rights and responsibilities created in a power of attorney document,” Gaal explains, “we hope to deter financial exploitation and prevent criminal victimization of the elderly from happening in the first place.”

The video also includes presentations by Jamie Andree, an attorney with Indiana Legal Services, Mavis Anderson, a social worker with the Bloomington Hospital, Janet Stavropoulos, president of the Monroe County Bar Association, Robert Miller, Chief Deputy Prosecuting Attorney, and Stacy Walden, Adult Protective Services. Several well-known community leaders also make cameo appearances in the film to pose questions to the panel, including: Sheriff Jim Kennedy, former City Council member Tony Pizzo, former County Commissioner Charlotte Zietlow, former Judge Vi Taliaferro, County Clerk Jim Fielder, and Bloomington Hospital Emergency Department Director Dr. Owen Slaughter.

In addition to general information about power of attorney documents, the video also covers issues related to health care advanced directives such as a “Living Will” and an “Appointment of a Health Care Representative.” The hospital intends to use the video to help inform patients who wish to sign such documents about their legal rights.

Contact information for resources in the community to assist the elderly in dealing with legal issues appears at the end of the film. The video highlights the fact that Indiana Legal Services provides free legal assistance for people age 60 or older and can be reached at 339-7668.

In addition to airing on community access television, the Elder Crimes Task Force will be distributing free DVD copies of the film to retirement communities, senior centers, health care providers, churches and other social service organizations concerned with the needs of the elderly population. Organizations wishing to receive a copy can contact the Office of the Monroe County Prosecuting Attorney at 349-2670.

Local video explains uses of legal documents related to health care, finances of the elderly
Gaal answers questions about power of attorney, living wills and health care representatives
H-T Report
December 5, 2007

A new public service video featuring several local community leaders is disseminating information about power of attorney, living wills and health care representatives to the elderly.
The video, titled “Power of Attorney: What you need to know,” was created by the Elder Crimes Task Force in the office of Monroe County Prosecutor Chris Gaal. The video, made in cooperation with Indiana Legal Services and Bloomington Hospital, shows people asking questions about issues and Gaal answering those questions.

“By making this video and educating people about the rights and responsibilities created in a power of attorney document, we hope to deter financial exploitation and prevent criminal victimization of the elderly from happening in the first place,” Gaal said in a prepared statement.
The video also covers issues related to health care, including living wills and health care representatives.

The DVD includes presentations by an attorney with Indiana Legal Services, a representative of Adult Protective Services and a social worker at Bloomington Hospital, among others. Community leaders posing as “citizens” who are asking Gaal questions on the video include Middle Way House economic development coordinator Charlotte Zietlow, Monroe County Sheriff Jim Kennedy, county clerk Jim Fielder, former Monroe Circuit Judge Vi Taliaferro, former Bloomington City Council member Tony Pizzo and Bloomington Hospital emergency department director Owen Slaughter.

The Elder Crimes Task Force will distribute free copies of the DVD to retirement communities, senior centers, health care providers, churches and other social service organizations.
If you’d like to find out more about free legal help for people aged 60 and older, contact Indiana Legal Services at 339-7668.

For a free copy of the video, contact Gaal’s office at 349-2670.

Guest Column
What you need to know before signing power of attorney
Herald-Times
December 7, 2007

This guest column was written by Monroe County Prosecuting Attorney Chris Gaal and Jamie Andree of Indiana Legal Services Inc.

It’s important to plan ahead for the future and consider what will happen if you become unable to manage your own financial affairs because of some health problem or age-related incapacity. Who will manage your bank account, pay bills and arrange for needed services if you can’t do it yourself? Many people use a power of attorney document to name someone to act on their behalf in case something happens to them.
Although signing a power of attorney may be necessary, giving someone else control over your finances can be risky and lead to problems if that person abuses their authority.

Every year, we see people turn over management of their financial affairs through a power of attorney, and every year we see people acting under that authority who don’t follow the rules and violate that relationship of trust — often because they don’t know the rules. Before you sign a power of attorney, you should know the rules and take steps to protect yourself.

The person signing the power of attorney is called the “principal,” and the person named to act on the principal’s behalf is called the “attorney-in-fact.”

Even though that person is called an “attorney-in-fact,” they need not be an attorney, and usually they are not. Typically the attorney-in-fact is just a trusted person. You should only appoint someone you trust completely to act on your behalf in a power of attorney. The trusted person may be a family member or a friend, but it is best if that person is financially independent with their own source of income.
Never appoint someone unless you know that person very well. Avoid appointing someone who has been in trouble with the law, or who has had financial problems. Some people appoint two representatives so that they can supervise each other.

When you sign a power of attorney, your money still belongs to you even though you’ve appointed someone else to handle it on your behalf. The money must be used only for the benefit of the principal.
The attorney-in-fact must keep the principal’s money separate from their own money, and unless they are transacting business on behalf of and for the benefit of the principal — keep their hands off it! An attorney-in-fact may be allowed to receive reimbursement for expenses, and may even receive compensation based upon their duties, but only if the document provides for compensation and only in strict conformance with what the document provides.

Unfortunately, we see bad situations come up where an attorney-in-fact spends the principal’s money on themselves and uses that money in a way that doesn’t benefit the principal. In those cases, the attorney-in-fact may be liable to the principal for damages, and may also face criminal charges such as theft or fraud.

An attorney-in-fact has a great deal of power that can be abused, but there is also accountability. The attorney-in-fact must keep a record of all transactions performed for six years, and the principal has the right to request an accounting which must be provided within 60 days.

Just because you become unable to manage your own financial affairs for a period of time doesn’t mean you can’t take back control or monitor what has been done in your name when you become able.
You can still protect yourself by reviewing your bank and credit card billing statements every month, checking your credit report, investigating signs that your attorney-in-fact may be using your money for purposes that don’t benefit you, asking questions and contacting a lawyer or the police if you think you have been financially exploited.

You can terminate a power of attorney at any time and for any reason.
You must notify the attorney-in-fact in writing that you are revoking the power of attorney, and should also notify your bank and other places where you do business. Notify the Recorder’s Office if the document was recorded.

Despite the risks, power of attorney documents can be necessary and helpful tools to plan for the future.
Bad situations happen when the attorney-in-fact forgets that it’s not the attorney-in-fact’s money. Keep that in mind, and remember that the money must be spent for the benefit of the principal, and many problems can be avoided.