Legal Question in Wills and Trusts in California
I have an interesting question. A dear friend was taken ill and when she entered hospice, her children sought POA and were granted it. She was quit wealthy and easily had the cash in savings and CD's to pay for her private caretaker and home hospice - but her children...well, they couldnt' wait for her to actually die before they cashed in on their inheritance. She had collected sterling silver all her life, and had a collect valued at half a million dollars, which they sold this past fall before silver prices dropped. I know she has left pieces to friends from this collection, and she just passed this past week. Here's my question: did her children with the POA have the authority to sell her silver before she died? I know with a POA you can sell assets for the person you're entrusted with, but in her case, she didn't need the cash. Also, what happens when the will is read and pieces left to others have been sold? are there any actions that can be taken?
1 Answer from Attorneys
It is possible that the POA agent has the authority to amend the trust, or even revoke it, and the will too, and change beneficiaries. It should say in the POA document. Generally the POA has a lot of power to manage the financial affairs of the person giving the POA.
However, California Probate code 21134(a) says
(a) Except as otherwise provided in this section, if after
the execution of the instrument of gift specifically given property
is sold or mortgaged by a conservator or by an agent acting within
the authority of a durable power of attorney for an incapacitated
principal, the transferee of the specific gift has the right to a
general pecuniary gift equal to the net sale price of, or the amount
of the unpaid loan on, the property.
So the transferees of your friend's specific gift might have a good case.
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