What Happens If an Attorney Abuses a Power of Attorney in Alberta?
This answer covers the law of Alberta.
If you suspect an attorney is misusing a donor's money, the main legal route is a court application under the Powers of Attorney Act asking the Court to order the attorney to bring in and pass accounts. The OPGT cannot investigate complaints against an attorney, so a concerned person's route is a court application.
The donor, the donor's personal representative or a trustee can apply, and if the donor cannot make reasonable judgments about their estate, any interested person can. Any interested person may also ask the Court to terminate the power of attorney if that is in the donor's best interests, although the Court will not appoint a substitute attorney and may direct the applicant to seek a trusteeship order.
Warning signs people often notice include unexplained withdrawals, missing records, or the donor being cut off from family. Where an attorney fraudulently sells or disposes of the donor's property, or converts the proceeds to another purpose, the Criminal Code treats this as theft. Whether conduct is misuse depends on the document and the facts, so a lawyer can help you assess it.
Key takeaways
- The Court can order an attorney to pass accounts, and any interested person can apply if the donor cannot make reasonable judgments about their estate.
- The OPGT cannot investigate complaints against an attorney, so a concerned person's route is a court application.
- The Court can terminate an enduring power of attorney if that is in the donor's best interests, but it cannot appoint a substitute attorney.
- Fraudulently disposing of property entrusted under a power of attorney can be theft under Criminal Code s. 331.