Legal Question in Wills and Trusts in Kentucky

Re: Power Of Attorney

I understand your question in the light that your mother has been declared incompetent or legally relinquished her ability to make decisions, and that your sister has power of attorney and is essentially the guardian of her estate/finances.... In this situation, it would depend on what the Power of Attorney says in this regard, or what the trust says (if the house is in a trust). If the DOA and trust instrument allow the attorney in fact to purchase property out of the estate for fair compensation, then yes your sister is allowed to buy the property. If it does not say so, then possibly not. Your sister should owe a duty to your mother to manage her funds, meaning if she purchased the house from your mother she would likely be remiss in allocating the profits out of your Mother's estate. Meaning she is probably not allowed to give her fellow siblings any of the profit, that profit is for your Mother's use.

Re: Power Of Attorney

I agree with the answer from my colleague in Sacremento. You first have to know what the power of attorney instrument says. Second, you have to look at what is being done with the money. The sister has a duty to you mother. If she is pocketing the money for herself, then that duty is being breached and you can take action on behalf of your mother.