Attorney Misusing a Parent's Money in Newfoundland and Labrador

If you suspect the person managing your parent's finances is spending money on themselves, moving funds or hiding records, it is natural to feel alarmed and unsure where to start. Newfoundland and Labrador law places real duties on attorneys, and there are routes to challenge misuse.

This article walks through what those duties are and what you can generally do, from raising the issue to going to court. Details depend on your parent's situation, so a lawyer should confirm the right path for you.

This article covers the law of Newfoundland and Labrador.

What an attorney is allowed to do

An enduring power of attorney is signed by the donor, countersigned by a qualifying witness, and can be exercised during the donor's legal incapacity. The witness cannot be the attorney or the attorney's spouse or cohabiting partner. It does not end just because the donor later becomes incapacitated. The attorney must be 19 or older.

The attorney must act in a way that protects the donor's best interests and must compensate for loss if they do not. They are treated as a trustee of the donor's property and may not hand their functions to another person. These duties are the standard you measure suspicious conduct against.

Legal incapacity means a mental disability such that the person would be unable to understand the nature and effect of an action. The Act has no registration requirement, and the Public Trustee can act as attorney. In plain words, a power of attorney is a position of trust, and the law expects the person holding it to put your parent first.

Signs worth taking seriously

• Bills for your parent's care going unpaid despite adequate funds.
• Sudden transfers, new joint accounts or changes of ownership.
• The attorney refusing to explain how money is being spent.
• Your parent's belongings or property being sold without explanation.
• The attorney isolating your parent from family.

None of these proves wrongdoing. Sometimes there is an innocent explanation, which is why records matter. Writing down what you see, with dates, helps you and any lawyer you speak with separate real concerns from misunderstandings.

Steps you can take

Start by asking calmly for information. Whether you are entitled to demand records directly depends on your situation, so it is worth confirming with a lawyer. If a calm request goes nowhere, the court has tools.

• Revocation: while your parent still has legal capacity, they may revoke the power at any time.
• Accounts: where the donor is incapacitated, a court may order the attorney to submit accounts.
• Substitution: a court may substitute another attorney if the attorney becomes incapacitated, and the Public Trustee may apply to substitute.
• Compensation: because the attorney must compensate for loss caused by failing to protect the donor's interests, a lawyer can advise on recovering money.

A court may relieve an attorney of liability if they acted honestly, reasonably and in good faith. Whether a particular attorney could be removed for misuse is something a lawyer can confirm based on the facts.

If your parent can no longer manage their affairs

Separate from the power of attorney, the Mentally Disabled Persons' Estates Act lets the court appoint a guardian of the estate for a mentally disabled person. The court may also declare a person incapable of managing their affairs because of mental infirmity from disease, age, habitual drunkenness, drug use or other cause. An applicant can be an interested person, a claimant, or the person responsible for the person's care, and the court makes the decision.

After a guardianship order, the guardian must file an inventory within 6 months and account. A new guardian may be appointed for good cause. The Public Trustee manages finances only and does not generally make medical decisions. Whether this route suits your family depends on the facts, so it is worth confirming with a lawyer before deciding.

Reporting to police

If you believe money has been taken dishonestly, you can contact the police. How a police report fits alongside any court steps depends on your situation, so it is worth confirming with a lawyer. Bring your documents and a clear timeline so officers can understand what you are describing.

What to do next

• Get a copy of the power of attorney document, if you can.
• Collect bank statements, property records and bills that show changes.
• Write a dated timeline of what you noticed and who said what.
• Avoid confronting the attorney in a way that gives them time to hide records.
• Speak with a lawyer about accounts, a court application and police reporting.

Frequently asked questions