Legal Question in Wills and Trusts in California
Power or attorney abuse
I was wondering what the possibilities are regarding power of attorney abuse. An individual has been given the power of attorney over the estate of a relative and through this has proceeded to use it to refinance the residence, which is an inheritance of two other siblings, in excess to the amount necessary. The refinancing was supposed to pay of a HUD loan, which was done, but an excess amount was refinanced for personal use of the holder of power of attorney. The excess was used to pay off personal debt and to purchase personal items. This was not the intention of the power of attorney label. There are other abuses. Can a third party be brought in to assume power of attorney, because the holder of this title is not using it to benefit the welfare of the other recipients of the estate and is being done outside the knowledge of the individual who has granted the power of attorney?
1 Answer from Attorneys
Re: Power or attorney abuse
Yes, see an attorney as soon as possible. An interested party with standing can file a petition demanding an accounting of activities under a power of attorney and request a surcharge (or refund) of monies misused by the power of attorney. The other option that should be considered is a conservatorship, which appoints someone as the principal's conservator and allows the impaired person's assets to come under the jurisdiction of the probate court.