I’ve written before about the importance of choosing the right attorney for both property and care, and taking the time to write those choices down. Here is a cautionary tale about what can happen if you pick the wrong one.
Jack Johnson is a star player with the Columbus Blue Jackets in the NHL. He has earned almost $18 million in the past four years, and is set to earn another $5 million by the end of this season. And he filed for bankruptcy in October.
His financial troubles stem almost directly from signing a power of attorney that allowed his parents, Jack Sr. and Tina Johnson, to have full control over his finances. They then proceeded to arrange for high-interest loans and purchase risky financial products, as well as guaranteeing some of those loans through Jack’s future earnings. They left his finances in utter chaos, and he didn’t even know.
It is so important to have a power of attorney in place so that someone can manage your finances when you no longer can. It is even more important to choose the right person to do so.