This brief article considers the steps families should take to prevent damaging conflicts and misconduct in cases relating to estates, such as when members suffer from cognitive decline and other problems.

A staple feature of thinking about wealth and estate planning is argument about wills and struggles within families to control wealth. Sometimes this has led to arguments about the proper use of lasting powers of attorney in cases where a senior family member falls ill, for example. Divorce and family break-ups create conflicts. And sometimes there are criminal acts by family members against others. The case discussed below is about a particularly shocking matter, and raises questions about the kind of steps families must take to protect themselves.

The author of this article is Debra Burton, associate in the contentious probate team at Lime Solicitors, a law firm in the UK. The editors of this news service are pleased to share these views but do not necessarily endorse all ideas of such contributors and invite responses. Email tom.burroughes@wealthbriefing.com

As a person’s life expectancy increases so does the likelihood of developing dementia-related illness. The advice is to consider appointing an attorney to manage your financial affairs if you are no longer able to do so yourself.  However, attorneys have a great deal of power and reports in the press about financial abuse by attorneys are, sadly, becoming increasingly common. 

The latest story to hit the headlines involved Richard Willis who was jailed for six years in 2015 for plundering his mother’s estate whilst acting as her attorney, and as she was seriously ill in a care home. After discovering he was not going to inherit under his mother’s will, Mr Willis abused his position and stole £713,000 ($810,660) from his mother’s estate over a period of four years. He funded a lavish lifestyle; buying a new house, luxury cars and expensive guns. After being released on licence he has been ordered to pay back £566,365 or face a further 40 months in prison.

So if you wanted to appoint an attorney, what can be done to protect your estate from unscrupulous family members determined to have “their inheritance” no matter what? Our top tips for avoiding such disputes are:

1. Consider carefully who to appoint as your attorney

The most important, and hardest, decision is deciding who to appoint as your attorney. Often a close relative is automatically appointed just because they are family, though deep down you may know that they aren’t the right choice. Take a step back and consider the following:

-- Are they organised? Will they mix up your money with their own or not account for it properly;  

-- Are they in debt? If so, it could be tempting for them to “dip” into your funds, justifying to themselves that it’s ok “because I will inherit it eventually anyway”;  

-- Do they get on with other family members? If not, then they may not co-operate with them and be secretive about what they are doing. This could lead to distrust and disputes; and 

-- Can they be objective?  If they don’t inherit your estate or don’t get on with your potential beneficiaries, they may deliberately spend your money on unnecessary items for you simply to reduce your estate so there is nothing left for anyone else.  

2. Appoint more than one attorney  

The majority of the horror stories concerning attorneys involve someone who was appointed as a sole attorney. They had free reign to raid the estate - there was no one around to complain before it was too late (as in the case of Mr Willis). Appointing two or more attorneys on a joint basis can act as an automatic check to prevent a “rogue” attorney from taking advantage.  

3. Keep your power of attorney under review 

Just because you have appointed someone as your attorney, this is not set in stone.  As long as you still have capacity you can change your mind. You can cancel it and appoint someone else.   

4. Take professional advice 

Powers of attorney made without legal advice can be a recipe for disaster. A few quid saved now could cost your estate thousands. Seek professional advice from a solicitor, to make sure that your wishes are properly documented and the appropriate attorney is appointed.

5. Talk! 

The element of surprise can lead to disputes. Not only do you need to discuss your wishes with your attorney, consider discussing them with your wider family and explain to them why you have appointed the attorney that you have. Also consider discussing the terms of your will with wider family. If the attorney does something in direct contradiction to your wishes, this could be a warning bell for your wider family. On the flip side, if your attorney is following your wishes, it could stop family members unfairly criticizing them or being worried.