Abuse of Power of Attorney

I have a situation where my grandmother has taken ill
and is now in a managed care home with little hope of coming home. Her
home is worth approximately $110,000 and her bank account 'was' worth
$75,000 when she became ill. My father has had access to her account
for quite some time now to manage her expenses and those of her husbands
before he passed away just over a year ago. Since she went into the home
we have had numerous discussions about what should be done with her
estate while she is in the home. Her expenses are $125.00 per day for
the home and her income is $2800.00 a month from social security and
other benefits. Obviously we are in a negative cash flow position. My
problem is this...

I have recommended that the money be put into an equity fund that would
make enough revenue to make up the balance after expenses. I figure in
the neighborhood of 15% would suffice. My father is not good with money
and has no knowledge of the stock market. He bought $25,000.00 of some
"blue chip" stocks in an effort ease my worries. This will not be
enough of an investment to make up the required funds. He is now
talking about selling her house to continue making payments on her
expenses. I learned tonight that he has gone out and bought a
conversion van so that he and his wife, (who is very ill of late just
got out of the hospital and has been on oxygen for several years), can
'travel'. This van cost $42,000.00. I am not totally aware of the
details of her will or his capabilities as power of attorney over her
finances but it seems to me that since she is still living, he is
abusing this power. Can he do this? Can I sue for power of attorney
over his mis-use of authority? I realize the implications of this
family matter and what it could do to my relationship with my father
however, he must consider what the money he is wasting would mean to his
later years as well. My father has never planned anything in his life
and it is time that someone do it for him. The state of residence for
all of us is Florida. Your reply is greatly appreciated.

Regards,

Dolfan

Investing short term money in an equity fund that "will earn 15%" is itself not necessarily prudent -- despite the recent 4 years, markets go down as well as up, and making what in hindsight would be regarded as imprudent or risky investments if the market tanks, to try to protect the value of the estate for the benefit of your father and other heirs, is not appropriate.

If, as you suggest, your father "stole" the money from your grandmother, to use for his own purposes and not for hers, a court could intervene.

But suppose Grandma told him to do it and essentially gave him a gift, so he could enjoy the money and she'd take pleasure seeing him do so during her life, and that this would also spend down the money so she can go on Medicaid. That's a different story.