Saturday, October 24, 2009

Power of attorney, can the agent press charges if the wrong was committed prior to the execution of the power?

A daughter has written checks to herself and signed her mother's name. They have had a very close relationship and still do. The daughter has paid back the money that was not spent and is truly sorry. Her mother has forgiven her and accepts the returned portion as full restitution and does not want any prosecution.
Now the tricky part...The mother's brother (uncle) is now power of attorney. Not the normal one page form but 10 pages, covering anything imaginable and some. Uncle is threatening to press charges if the close daughter doesn't stop being a part of her mother's life. Can he, as agent have charges brought against the daughter even though the money was taken prior to uncle becoming the agent? (1-2 mos.)
I can't believe what has happened. Mother was of the notion that a trust was being set up. Sister has not had the same relationship over the 30+ years and is now somehow convining the agent to make up for favored past of close daughter, with his control and mother's money
Answers:
I have to agree with the previous poster that without reading the power of attorney I can't make properly informed statements about the powers granted. That said, its generally true that a power of attorney does not grant the agent the right to rescind completed transactions made prior to the power of attorney. If the daughter received money, paid it back and both parties were satisfied and stated that they were satisfied then the matter was closed. If the mother granted a power of attorney to establish a trust then it does not sound like the mother was declared incompetent. This means the mother can see who ever she wants too and retains all the rights she ever had. She is simply delegating authority to another with legal knowledge to expedite a legal matter. Basically she is letting someone sign contracts and checks in her name to make the process go faster and eisier.
Power of attorney rarely (unless specifically mentioned) grants the right to bring charges or file suit in the other person's name.
Without reviewing teh 10-page document, I cannot answer if that document grants that power (called a "chose in action").

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