Legal Question in Credit and Debt Law in New York
check cashing with power of att.
my mother recently past away.i had power of att. and cashed her checks and paid what needed paying ect. now a company says that a check they sent my mother was payment in advance and they want me to pay back the money because i cashed the check.the money was spent on her funeral expenses and is gone. do i have to pay back the money?
1 Answer from Attorneys
Re: check cashing with power of att.
Under the law, a power of attorney ENDS when the principal (your mother) passes away. Therefore, it can be argued that you cashed that check improperly and therefore the company that sent the check may have a right to sue you for the funds. I am a little concerned that the improper cashing of a check may be considered a criminal act of fraud...but if no one raises that as an issue I would not worry about it. Simply because someone may have the right to sue you does not mean you HAVE to pay them back, but a court might determine that you OWE them the funds. A judgment may eventually be entered and if that happens it would mean that they sued you. If there is a law suit, you can try to settle the matter if you have any money to offer and if they accept your offer. If there is no settlement and the judgment is entered, they have to find your assets and seize them pursuant to the laws of NY. Not an easy thing. Don't be in a hurry to pay...see what happens.
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