Revoking Power of Attorney in Arkansas: How to Remove an Agent

Your parent signed a power of attorney naming your sibling as their financial agent two years ago, and now you suspect the agent is making unauthorized withdrawals, paying their own bills from your parent's account, or steering financial decisions in their personal interest rather than your parent's. The good news: a power of attorney can be revoked. The bad news: timing matters enormously.

How Revocation Works

Under Arkansas law, a principal (your parent) can revoke a power of attorney at any time — as long as they still have mental capacity. Revocation must be clear and unambiguous. The safest approach:

1. Draft a written revocation statement identifying the original POA by date, the agent's name, and a clear declaration that all authority is revoked
2. Have the revocation notarized — while not strictly required for revocation, notarization creates an evidentiary record that matches the formality of the original document
3. Deliver the revocation to the agent — personal delivery or certified mail with return receipt. The agent's authority terminates when they receive actual notice of the revocation.
4. Notify every institution that has a copy of the original POA — every bank, brokerage, insurance company, medical provider, and government agency. Until they receive notice of revocation, third parties can continue to rely on the existing POA in good faith.
5. Record the revocation with the county clerk if the original POA was recorded (required for real estate transactions under § 18-12-501)

After revocation, execute a new POA naming a different agent if your parent still needs someone to manage their affairs.

The Agent's Fiduciary Duty

Under Arkansas Code Title 28, Chapter 68, an agent operating under a power of attorney has a statutory fiduciary duty to:

• Act in the principal's best interest at all times
• Keep the principal's assets separate from their own
• Maintain accurate records of all transactions
• Provide a full accounting if requested by the principal, a court, or other authorized parties
• Avoid self-dealing — the agent cannot use the principal's funds for their own benefit unless the POA explicitly permits it

An agent who violates these duties is personally liable for all losses. Arkansas courts can order disgorgement of improperly taken funds, removal of the agent, and damages.

What Constitutes POA Abuse

Financial exploitation through a power of attorney is more common than most families realize. Warning signs include:

• Unexplained withdrawals or transfers from the parent's accounts
• Bills going unpaid despite adequate account balances
• The agent purchasing personal items — cars, vacations, home improvements — with the parent's funds
• Real estate being transferred to the agent or the agent's family members
• The agent restricting other family members' access to the parent
• Refusal to provide financial records when asked

When the Parent Cannot Revoke

If your parent has lost mental capacity, they can no longer revoke the POA themselves. In this situation, the family's options are:

• File for guardianship — a court-appointed guardian can revoke a prior POA and take over management of the parent's affairs
• Report to Adult Protective Services — APS investigates allegations of financial exploitation of vulnerable adults. The APS hotline in Arkansas is available for anonymous reports.
• File a civil lawsuit — any interested party can petition the court to compel the agent to provide an accounting or to remove the agent for breach of fiduciary duty

If financial exploitation has already occurred, the family should report it immediately to law enforcement and APS simultaneously. Under Arkansas's adult custody maltreatment statutes, financial exploitation of an elderly person is a criminal offense.

Prevention Through Structural Safeguards

The best protection against POA abuse is building accountability into the original document:

• Name co-agents who must both approve major transactions
• Require periodic accountings — the POA can specify that the agent must provide financial reports to other family members quarterly or annually
• Limit the scope — a limited POA restricts the agent to specific tasks, preventing broad access to all assets
• Name a monitor — the POA can designate a third party who has the right to request accountings and review the agent's transactions

The Arkansas Power of Attorney & Guardianship Kit for Aging Parents includes customizable POA templates with co-agent provisions, accountability requirements, and revocation forms.

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