August was National Make-A-Will Month, but September is a good time to revisit another key component of estate and elder planning: powers of attorney (POAs). These documents are critical tools for ensuring trusted individuals can make decisions on our behalf when we can’t. But with great power comes great responsibility—and, potentially, liability.
A recent case out of Pennsylvania (In re Beam, July 2025) serves as a cautionary example of what can happen when an agent under a POA abuses that authority. While this case was decided under Pennsylvania law, the issues it raises are directly relevant to New Jersey residents and underscore what happens when a fiduciary breaches his or her fiduciary duty.
What Happened in In re Beam?
Dorothy Beam named her great-niece, Vaneeda Days, as her agent under a POA in 2016. When Dorothy moved into a nursing facility in 2018, Vaneeda began making large, unexplained withdrawals from Dorothy’s accounts—over $140,000 in total—yet failed to pay her aunt’s outstanding nursing home bill. After Dorothy’s death, the administrator of her estate challenged the transactions, alleging self-dealing, misappropriation, and a breach of fiduciary duty.
The lower court initially limited liability to the unpaid nursing home bill, but the Pennsylvania Superior Court reversed that decision. It found that Vaneeda failed to provide any records or explanations for the withdrawals, did not appear in court, and essentially acted in her own interest rather than Dorothy’s. She was ultimately held liable for the full amount withdrawn.
What Would Happen Under New Jersey Law?
In New Jersey, agents acting under a POA are also fiduciaries. That means they have a legal duty to act in the best interest of the principal (the person who granted the power), manage finances responsibly, and avoid self-dealing or using funds for personal benefit unless specifically authorized.
Key fiduciary responsibilities in New Jersey include:
- Keeping detailed records of all transactions
- Acting with honesty, loyalty, and care
- Avoiding conflicts of interest
- Only making gifts if explicitly permitted in the POA
If an agent under a POA in New Jersey fails to uphold these duties, they can be:
- Removed by the court
- Ordered to provide an accounting
- Surcharged (i.e., required to repay) for funds improperly spent
- Held personally liable for financial harm
The court may infer wrongdoing if the agent cannot, or refuses to, explain or document how the principal’s funds were used. In fact, a New Jersey court could come to the same conclusion as Pennsylvania did in In re Beam and hold the agent liable for the full amount of unexplained or unauthorized transactions.
How to Protect Yourself or a Loved One
Whether you’re appointing an agent or serving as one, these steps can help reduce the risk of abuse or allegations of it:
- Work with an experienced Estate or Elder Law attorney to draft a clear, detailed POA that outlines gift-giving authority, compensation, and record-keeping expectations.
- Keep meticulous records of all financial transactions made on the principal’s behalf.
- Communicate regularly with family members or other stakeholders to avoid misunderstandings.
- Be cautious about who you appoint—choose someone you trust who understands the responsibilities and is willing to follow the rules.
In re Beam is a sobering reminder that a POA is not a blank check. It’s a serious legal obligation, and misuse of that authority can lead to personal liability—whether you’re in Pennsylvania or New Jersey.
