What If the Agent Under a Power of Attorney Abuses Their Authority?

A Serious Breach of Trust

A power of attorney (POA) gives someone (the agent) the legal authority to act on another person’s behalf (the principal) — often for finances, property, or healthcare decisions. It’s meant to protect and assist, not exploit.

When an agent under a POA misuses that authority, it can cause devastating financial and emotional harm. Arizona law recognizes these abuses as serious fiduciary violations that can be challenged in court under Arizona’s Adult Protective Services Act and other law.

Examples of Power of Attorney Abuse

Abuse can take many forms, such as:

• Transferring the principal’s money or property to themselves

• Changing beneficiary designations for personal benefit

• Selling real estate below market value to the agent’s family

• Withdrawing funds from bank accounts without permission

• Using the principal’s money for their own expenses

These acts may violate the fiduciary duty of loyalty and good faith owed to the person who granted the power.

Arizona Law Protects Against POA Abuse

Under Arizona law, an agent must act in accordance with the terms of the POA, the principal’s reasonable expectations and in the principal’s best interest. They must:

• Avoid self-dealing or conflicts of interest

• Keep accurate financial records

• Preserve the principal’s estate plan and intent

If they violate these duties, they can be removed, sued for damages, or even referred for criminal prosecution or sued for civil remedies under Arizona’s vulnerable adult statute (A.R.S. § 46-456).

Signs of Power of Attorney Misuse

Family members and caregivers should be alert to warning signs, including:

• Sudden or unexplained transfers of money

• Isolation of the principal from loved ones

• Unpaid bills or disappearing assets

• The agent refusing to share records or answer questions

If something feels wrong, trust your instincts — abuse under a POA often happens quietly and escalates quickly.

Legal Remedies for Power of Attorney Abuse

When abuse occurs, Arizona law provides several remedies:

1. Revoke the POA and remove the agent.

2. File a civil action for breach of fiduciary duty or financial exploitation.

3. Petition for guardianship or conservatorship if the principal can no longer protect themselves.

4. Recover misappropriated property and seek extra damages for exploitation.

Swift legal action can prevent further harm and preserve the estate’s assets.

At Berk Law Group, We Hold Abusive Agents Accountable

Our Scottsdale, Arizona probate and fiduciary litigation attorneys have decades of experience uncovering and remedying POA abuse. Whether you suspect exploitation or need to defend against false allegations, we can help you take decisive action.  Contact us today to schedule a confidential consultation and learn your legal options under Arizona law.

Watch our two-part series to tearn how to protect vulnerable loved ones from exploitation.

Protecting Loved Ones from Financial Abuse