Peter Smith took over his dad's financial affairs at the beginning of 2010. He took notarial copies of the power of attorney document to his father's financial adviser and banks, provided a doctor's letter confirming his father's incapacity to anyone who asked for it. He then started writing cheques and collecting his dad's pension payments. So far, so good.
He wanted to do the job right, and after six months of handling his father's affairs he made an appointment to get some advice from a lawyer. The lawyer asked him to bring in the books he was maintaining for his father's money.
"What books?" Peter asked.
It turns out that an attorney is expected to keep books and detailed records. Those books would normally begin with a statement of everything his father owned and its value as of the date Peter took over. The books would then give an annual history of "all amounts received and disbursed." That means a detailed day-to-day statement of each dollar spent on his father's behalf or received for his benefit.
An example of an amount disbursed might read: "September 1 - Paid $1,219.21 to Green Acres Personal Care Home." An example of an amount received might read: "September 6 - Received $2,590.56 from Civil Service Superannuation Board - Pension payment."
At the end of each year an attorney like Peter is expected to reconcile everything. That means showing the closing value of all of the assets, and tying in all of the money that went out and went in so everything hangs together.
As backup, he was also expected to have receipts, cancelled cheques, bank statements and the like, and have all of that organized and ready to produce.
If that sounds like a lot of work, it is. Some folks don't bother.
They should. Why? There is often a day of reckoning.
Full Article and Source:
Keeping Meticulous Books a Blessing When Taking Over Finances
3 comments:
Of course, keeping meticulous books is important to accountants, but why don't some judges and lawyers think so?
It true that one should always protect oneself by keeping meticulous records.
Unfortunately, lawyers can cook the books and judges can ignore them. In my own case, a lawyer lied about phoning a key witness, my dad's sister. The witness called the lawyer's bluff and asked the Bar to demand the lawyer produce his long distance phone record. The Bar didn't. For details, see the letter which my dad's sister wrote the Bar. I have reproduced it online at http://home.roadrunner.com/~tvfields/CharlotteLtr/Frameset001.htm. More importantly, sign the petition at wh.gov/gJG (case sensitive) so as to guarantee the right to present such evidence to a jury without having to get caught up in the costly game which has been rigged to benefit lawyers, judges and special interests at the expense of justice.
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