Custody Of My Sisters Son, questions!! (And Problems)

What is the name of your state? MI
I apologize for the long post in advance!! I thought detail would be better here.

Last Month My husband and I gained sole physical custody and joint legal custody of my sisters oldest son (14), prior to this my nephew lived with us for just over a year, we had two 6 month Power Of Attorney/Guardianship Forms as required by our local school so the child could attend, and so we would be able to make medical decisions in case of emergencies.
There were no child support discussions, she just basically said come get him, and we did. She gave me his school report card, an insurance card, his allergy list, and a hand written letter saying she gave us permission to raise her child. Of course, that was not good enough for the school, thus the power of attorney.
Trying to keep this short... He became ill a couple of times, I showed the insurance card she gave us, because we live such a distance from his mother, the doctor had me pay cash, and bill the company. I called my sister and told her she would receive two checks and to please forward them back to me, as I paid with my cash. She never sent the checks, and told us her husband spent them. Her husband also said they were going to claim him that 1st year on taxes and he would have it no other way, I agreed just to keep the peace. So We talked about getting insurance from the state, (Neither me or my husband have insurance) and that it may cause other issues with child support or the childs father (not her husbands child), she said to go ahead.

Upon getting insurance from the FIA, we were told my sister would be notified and a support order would be in place. Of course when she received the order she and her husband (mostly husband) had a total fit. Saying they can’t afford it, wouldn’t pay and can’t believe I would do such a thing. I guess they finally were told by enough people that I didn’t want the support, the state required it, that they let it go, but still never has paid.
We also found out that my sister has been for years and still was currently collecting child support from the boys father. Every week, on time. (The father has not contacted my nephew in 6+years, only seen him twice before that.) That county Friend Of The Court contacted us, we explained the situation and they said the checks would be changed from my sisters name to ours, that was in June and nothing yet.

This year, as she signed over a permanent custody agreement in December, my husband and I decided we would claim him on taxes this year, after all we have received no support for him and supply him with all his needs, plus many extras. One of our calls to the FOC in the fathers county said to file early, because they will probably try to claim him. We did, and they were right, but we filed two days before. I didn’t file early to try to beat them, but rather to save my butt in case they are still being jerks about it all. I would like to add we have only been married 3 years, two of which my nephew has lived with us, I am 27 and hubby is 33, it has been a challenge. We built a home and lost our jobs, unemployed for half a year, taking on any jobs we could, including flipping burgers until something else came along. We have been broke. My sister & hubbys income in literally 5 times or larger than ours. Things are just now starting to look up, this tax return will help us almost level our bills to a monthly payment.

Well the call came, to my parents house as our phone was disconnected for nonpayment. I happened to be there. It was her husband calling my mom every name in the book, as he assumes that my parents are at fault for our filing. He yelled and carried on, we all felt very threatened by him, he said he was going to come pick up the boy that night or in the morning, he said he was always going to claim him on taxes and I was sneaky, and making him look a fool. My sister was crying and crying, you could here him throw and break things, and eventually either hung up the phone or pulled it out of the wall, as my sister was in the middle of a sob when it was cut off. We called to family that lived by her (we are 4 hours away) to check on her, and she came to the door and asked everyone to leave them alone, her husband is sick and she is standing by his side. Later that night we got a call from a friend that they were not coming to get the child, and we haven’t heard a thing since.

My nephew wants to live with us, and not them as his words are, “he is scared for his life”. He is 14 and I feel very mature for his age in ways of life. We love him very much, and want him here with us, he has just gotten adjusted and starting doing better in school.

Can this man, an non-biological father who raised a boy for 12 years, just come and just take my nephew from us? What if my sister shows up at the school, or anywhere, my house even and wants to take him, can I use that order of custody and call the police. She didn’t ask for any specific parenting time, just as parties agree in the order. (He’s been to her house 4 times in two years, she came here to drop him off once.)
Her husband has a criminal record, guns, fighting, drinking, drugs, including at least two felonies, and I believe one case still pending, he has been in trouble a lot for years. I don’t want to use dirty cards.
I have bones in the closet as well, 6 years ago when I was in college I was arrested for use of drugs, a mistamedor, they know this as well and I don’t want that used against me either. I don’t use now, or since then, but it is still embarrassing and I am scared that something I did when I was 21 years old will harm my case of giving him a stable home.

I am learning a lot, but am very stupid to the law where children are concerned as I have no children of my own, and advice on anything would be appreciated!!

[stealth2]

Here's what's not clear in all that - do you have an actual court order that names you as the guardian/custodian of the child?

Yes, she signed it on Dec. 26th, 2003. We recived it in the mail about a week later.
It states that my husband is the custodian, my sister is the mother of said minor....

My husband shall have sole physical custody of said minor and joint legal custody with my sister until further order of the court.

She never bothered to have my name put in it, but that don't really matter at the moment. The sad thing is she has only met my husband 3 or 4 times. ANYWAY...

It was in our county, we never had a court date, we just showed up for an interview at the court upon their request, answered a few questions and then about a month later we recieved the court order, including an order for child support.

It was in our county, we never had a court date,

And in what country was this?

[stealth2]

Originally posted by hexeliebe
And in what country was this?

pssst, hex.... reread the original post... you added a letter.