Legal Question in Wills and Trusts in New Jersey
Brother stealing estate
My mother is 91. She suffered from mental psychosis all her life but nothing
was ever done about it. She also was suffering from medical problems that
needed attention but she refused to leave the house to see a doctor. We
subsequently were forced to have her intervened and taken from her house to
be evaluated. She was deemed to be mentally incompetant and unable to take
care of herself any longer. She was subsequently put in a nursing home. Since
she was declared mentally incompetent my brother , who has power of
attorney for my mom, found that now that he could legally transfer title of my
mother's house to his name. He said he would sell the house and the
proceeds would be split amongst all the siblings. I have since found out that
he plans to keep all the proceeds for himself. In fact he has already bled off
alot of cash via a equity line of credit.My mother's mind is still sharp and is
much better now that she is properly medicated. I didn't expect any money
from my mother's estate knowing that it would be used to pay for her nursing
home expenses. She knows nothing of the situation and what my brother is
trying to do is a disgrace. Is what he is doing legal and what can I do to stop
him?
4 Answers from Attorneys
Re: Brother stealing estate
While the Power of Attorney may authorize your brother to do what he has done, he must act as a fiduciary to all interested parties; your mother and the siblings, not for his personal benefit. It is probably going to take litigation to get him both to account for what he has done and where the funds have gone. A court can order restitution from him for any personal benefit, can negate the POA, if necessary, and appoint someone to be the guardian for your mother and to handle her money and affairs. I would not wait to consider litigation against your brother and it should be started promptly, while all information on your mother's assets are still available.
Re: Brother stealing estate
if your mother has regained her competancy or if she is having periods of lucidity she can revoke the power of attorney she granted to your brother. if your mom was ajudicated (by the court) as being incompetent, the court would have appointed a guardian or conservator over her assets. is that what you mean by your brother having power of attorney? if so the court has supervisory powers over your brother. do not delay in taking action to protect your, your siblings and your mother's best interests. please contact me if i can be of any assistance. i offer a free no obligation initial consulation.
peter
Re: Brother stealing estate
Assuming that you have give all the relevant facts, it would appear that what you are describing is not proper under a power of attorney, certainly. Please contact me if I can assist you. 973 890 0400
Re: Brother stealing estate
Your question raises a few questions from me..
1. Was your mother ajudicated incapacitated? If so, was a guardian appointed by the court? If so, then the power of attorney has probably been revoked, so your brother would not legally be able to have access to your mother's assets.
If your brother is the guardian, he probably had to post a bond (that will protect the estate against losses).
2. I doubt very much that your brother would have the power to transfer title of the house into his own name. Even if he did, I would think the transfer could be voided on several grounds (i.e. undue influence, self-dealing, breach of fiduciary duty and possibly fraud).
3. You say he has 'bled off cash' using a home equity loan. Was the cash used to pay for your mother's medical expenses or did he take the money for himself? Can you prove anything?
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