Examining the Legal and Ethical Dimensions of Cindy Smith's EPA Case

This case study analyzes the legal and ethical implications of Cindy Smith's situation, where her son misused the Enduring Power of Attorney (EPA) she granted him while she was hospitalized. The analysis addresses whether the son's actions of squandering microfinance funds were legally and ethically wrong, emphasizing his abuse of responsibility. It further considers the legal aspects, such as the authority and duties of the attorney under the EPA, and ethical considerations, including the involvement of an attorney in the microfinance's operation and instructions for bank access. The study also explores the importance of prior revocation of authority and expressing wishes for financial advice before major transactions. Ultimately, it highlights the son's failure to comply with EPA policies and his liability for the financial losses incurred, referencing relevant legal and ethical literature to support the analysis. Desklib provides access to this case study and many other solved assignments and resources to aid students in their studies.

Running head: CINDY SMITH’S EPA CASE 1
Cindy Smith’s EPA Case
Student’s Name
Institutional Affiliation

CINDY SMITH’S EPA CASE 2
Question 1
It was legally and ethically wrong for Cindy’s son squander the microfinance funds
without informing her. He abused the responsibility entrusted to him by Cindy through the
Endurance Power by Attorney. She signed the EPA her responsibility to being honest giving him
an opportunity to make informed decisions towards the development of the microfinance in her
absence. As a mother, Cindy had confidence in her son. She believed that things would be good
and there was no chance of temptation with the son to neglect his duties and misuse the micro-
finance funds. The son failed to honor the enduring power of attorney by wasting the
microfinance’s funds which was against the interest of Cindy (Prentice, 2015). Legal actions
should be taken. The son should provide written documentation that trace the use all the
transaction. Any wealth gained by him should be used as collateral to save Cindy's state.
Question 2
Legal Considerations to address in response to Cindy Smith situation
Authority of the attorney
Cindy had given her son authority to do anything legal as an agent to Candy’s
microfinance. It was expected that the son would control the microfinance according to the
directives and agreement made during signing of the EPA. He had limited power to her mother’s
financial affairs. His action of withdrawing the cash was illegal and ethically wrong (Stricklin,
2013).
Duties of Attorney
According to the EPA, the son had to act honestly and in good faith. He needed to keep
records of all the transactions undertaken by the microfinance. He should be held accountable for

CINDY SMITH’S EPA CASE 3
all the expenditures. On account that the son has invested with Cindy’s finance, the investment
should be used to pay for all the losses experienced by Candy (Sato, 2012).
Compensation for attorneys
Cindy needed to have discussed the compensation matter with the son. This allows her to
reimburse all the rational expenses made by the son. When signing the EPA Cindy had to
authorize the compensation and set the compensation rate and amount (Powers, 2013).
Question 3
Ethical considerations to address in response to Cindy Smith situation
Involving an attorney on the operation of the microfinance
The attorney to Candy’s EPA should have taken control upon realizing the loss of
capacity in the son. Candy should have been notified withdrawals done.
Instructions to bank access
It is not always easy for the attorney to access the bank on your behalf. Candy should
have included directions and conditions regarding the bank account. However, Candy was
supposed to retain her bank credentials to prevent any unwanted money withdrawals perhaps that
would have saved her financial state.
Prior revocation of authority
Although the EPA allows the revocation after the death of the principal. In our case,
Candy’s son has failed to honor and grow the microfinance. His interest is to loot the
microfinance. The Attorney needs must incur the personal liability. The son should have

CINDY SMITH’S EPA CASE 4
informed Candy on the transactions he was undertaking. And thus he should be held liable for
failing to comply with the EPA set policies.
Expressing a wish to obtain advice or finance before undertaking any major transactions
During the signing of the EPA, Candy needed to include a clause guiding the attorney to
provide any advice or financial assist to the son in running the business.

CINDY SMITH’S EPA CASE 5
References
Powers, B. A. (2013). Nursing home ethics: Everyday issues affecting residents with dementia.
Springer Publishing Company.
Prentice, R. A. (2015). Behavioral ethics: Can it help lawyers (and others) be their best
selves. Notre Dame JL Ethics & Pub. Pol'y, 29, 35.
Sato, G. (2012). The Mediator-Lawyer: Implications for the Practice of Law and One Argument
for Professional Responsibility Guidance-A Proposal for Some Ethical Considerations. UCLA L.
Rev., 34, 507.
Stricklin, J. M. (2013). The Most Dangerous Directive: The Rise of the Presidential Memoranda
in the Twenty-First Century as a Legislative Shortcut. Tul. L. Rev., 88, 397.

CINDY SMITH’S EPA CASE 6