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Case Studies and CSI Views News Article and House Bill Raise Awareness 
In my role as the Executive Director of CSI, Inc., I’m convinced there are two primary deterrents to financial abuse – full transparency and ongoing financial monitoring. CSI is a nonprofit that provides protective financial oversight for seniors and people with disabilities. When caregivers take over the finances for others, it can be extremely stressful. They typically lack the time and training to properly administer another’s affairs and honest mistakes often occur. But the real tragedy is financial abuse. The majority of people who reach out to seniors are loving, compassionate people, but unfortunately, there are those with selfish motives. As the article cited, financial exploitation is on the rise. Families, attorneys and the courts often call upon CSI to help pick up the pieces after elders have fallen prey to an abuser. It is appalling to see the devastating after-effects of this crime and how much it damages entire generations. Today’s bad economy seems to be an added lure since financial exploitation can be relatively difficult to detect and challenging to prove. That is why CSI applauds House Bill 2979, requiring a notary and two unrelated witnesses to validate a POA before it can be used. It is unfortunate that HB 2979 was unsuccessful, but it was a step in the right direction. We hope the Bill, along with The Advertiser’s article, will lead to higher awareness and legislative traction in the future. The current law only requires two people to sign an enforceable POA – the person giving away his power (the principal) and the person receiving it (the attorney-in-fact). HB 2979 added three additional people to the mix: two witnesses, unrelated to each other and the attorney-in-fact, and a notary. Although the Bill was unsuccessful, it is possible that it may be reintroduced in the future. In that event, CSI urges lawmakers to give special attention to whether or not the two witnesses should be restricted from being unrelated. In theory, CSI supports this idea. Separation of power is a valuable safeguard against fraud. In this case, though, CSI believes the restriction may have unintended consequences. For example, when a child takes Power of Attorney for a parent, the Bill would prevent his or her siblings from being witnesses. Instead, an unrelated party would serve in this role, which might be a mistake. CSI has consistently observed that the most successful arrangements occur when multiple family members are involved in financial decision making. The provision of the Bill may have actually restricted, not improved, transparency which was obviously not the Bill’s intent. As Hawaii’s population grows older, a staggering number of households will be grappling with the thorny financial issues of their aging loved ones. CSI sees first-hand how stressful and confusing families become when a loved one needs help with finances, but has never given instructions. In these all-too-common scenarios, the families who weather the storm the best are those that pull together and commit themselves to full transparency and ongoing financial monitoring. In the absence of House Bill 2979, CSI supports the common sense recommendations cited by most elder law experts. In short, basic financial protocols commonly used in business are very effective. Having a written “job description” for the attorney-in-fact, as well as a “transition plan” for that role will spell out what is expected and help ensure uninterrupted continuity from day one. Regular financial accounting and the requirement of more than one signature for large purchases are also wise precautions. Special requirements for major transactions – such as transferring real estate or taking out a second mortgage – should be instituted. All of these measures help build a protective fence around a senior’s finances. The elder generation has cared for us throughout their lives, and now it’s time for us to help protect them. For more tips about deterring financial exploitation, contact us at (808) 538-1994. Shin Domen is the Executive Director of CSI, Inc. (Comfort, Security, Independence). He wrote this commentary for The Advertiser. |
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 Based on my personal experience in which my firm has worked in tandem with CSI, I recommend CSI, without reservation, to those in need of trustee, guardianship or conservatorship services - Scott A. Makuakane, Attorney, Est8Planning Counsel LLLC >> Read More Testimonials |
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