Legal Question in Wills and Trusts in New Jersey
fiduciary duties
I was power of attorney over my father's medical deccisions. He also asked me to pay his bills while on his deathbed (I reluctantly agreed)and gave me his check card; he subsequently died. His widow wants an accounting of all bills paid which I do not have. I used said funds to pay his important bills such as health insurance and car payments. In addition, I used funds to pay for a very nice suit for him to be buried in, shoes, and the lunch following the funeral. I did not benefit from this. Do I have a duty to provide accounting and could I be liable for $500 suit $200 shoes and $600 lunch?
2 Answers from Attorneys
Re: fiduciary duties
I need more facts to give a full answer. I can't tell if you ever had proper authority to sign your father's checks and pay bills...also, it appears that you used your authority to pay for expenses after your father's death..the power of atorney (if you had one) would not continue after your father died and those transactions could be challenged.
That being said, your step mother could sue you to account for how the money was spent, however, based on the amount in controversy, this strikes me as huge waste of time. The cost of bringing such a suit would likely exceed any potential recovery, and under the circumstances, a judge would likely allow the expenses if it is shown that they were made for your father's benefit, and not for you.
Re: fiduciary duties
Power for medical decisions is not a power to pay bills. If he authorized you to pay bills, was it in writing or orally? If in writing, or if, orally and you can verify you actually had the power, any bills you paid before he died are not your responsibility. A power terminates with death under NJ law, unless you did not know he was dead when you wrote the checks. So, you could be held responsible for any bills paid after his death. Your actual responsibility would depend upon the nature of the bills you paid. Did your father have a Will? If so, who is named the executor. If you were named, you would probably be relieved of any responsibility for post-death bills. While the expenses you paid (shoes, suit and lunch) might be proper, you have the exposure of being sued for paying for these without authority, unless the executor confirms that these were proper expenses to pay. These is much information missing - but the bottom line is you have an exposure, the widow could sue you (she might not look good in court, but would have the right) and you could be responsible. The widow's costs to sue you might deter her, but she might sue anyway. I suggest you discuss this with the widow and the executor. The expenses will probably be acceptable.