Legal Question in Wills and Trusts in California

POA Abuse/Financial Abuse?

My question relates to the possible abuse of power of attorney (POA) and as a Trustee of a trust. My aunt is a widow in her late 80s and has progressive Alzheimer�s disease. A year ago my sister became her POA & sole Trustee of her revocable trust. My aunt is legally incompetent. My aunt�s only trust asset was the home. After living a few months in a board & care, she has now been at a nursing home for several months. She is on Medi-Cal. A few months ago my sister placed my aunt�s home for sale and it sold in the last few weeks for a little under $500,000. I assumed as Trustee my sister would be obligated by law to take the proceeds from the sale of the home and place them into the living trust and to be used only for my aunt. Didn�t happen. Public records show my sister went to the county and acting as Trustee, quitclaimed my aunt�s interest in her home back to my aunt as an individual. My sister then received the property interest acting as POA for my aunt. Then, in a separate transaction, and now assuming the role of POA once again, my sister then quitclaimed the property interest to her own husband. These 2 quitclaims were for �no consideration� to the trust, no attorneys involved and done the same day. I would like any input


Asked on 10/31/06, 10:00 pm

1 Answer from Attorneys

Joel Selik www.SelikLaw.com

Re: POA Abuse/Financial Abuse?

Yes, she may not take property for her own use.

Joel

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Answered on 10/31/06, 10:45 pm


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