Legal Question in Wills and Trusts in North Carolina
What is there to prevent my sister from using her power of attorney to move most of our parents money into a POD account that pays out only to her? She will leave me with nothing out my parents estate when they pass away.
1 Answer from Attorneys
I have to see the language in the power of attorney. In theory, if it is drafted properly, then she cannot engage in transactions whereby she makes alterations to your parents' finances to benefit herself or her family. However, I do not know where your parents live. I am only admitted in NC, GA & PA and cannot advise you if the power of attorney was made in another state.
The only way to defeat a power of attorney is via guardianship. If your sister starts to misuse the power of attorney, you can bring a guardianship action (also called a conservatorship in some states). You would have to prove that your parents' are incompetent and that you should be the guardian of their person and/or property. Do not allow a public guardian to be appointed as their primary interest is in sticking your parents in a nursing home and liquidating their assets.
If your parents are competent, then you would have to convince them that your sister was up to no good. If they agreed, they could revoke the power of attorney in favor of your sister at any time. They have to revoke the power of attorney in accordance with the law of the state where they made the power or where they reside.