What is the name of your state? California
Hello…
My question relates to the possible abuse of power of attorney (POA) and as a Trustee of a trust. The situation involves my aunt who is in her mid 80s and has Alzheimer’s disease. A year or so ago my sister became her POA and the sole Trustee of her revocable trust. My aunt became unable to live on her own and was declared legally incompetent at this time. My aunt’s only asset in the trust was her home which she had lived in for 50+ years. Her husband has already passed away. After living for a few months in a board & care, she has now been at a nursing home for several months. Medicaid or Medi-Cal as they call it in California is helping to pay for her care.
A few months ago my sister placed my aunt’s home on the market and it has apparently sold in the last few weeks for a little under $500,000. I assumed that as Trustee my sister would be obligated to take the proceeds from the sale of the home and place them into the living trust and to be used only for my aunt’s care. Instead, and what I have found out recently unbeknownst to my sister and through public records, this was not done. What was done was my sister went to the county and acting as Trustee, quitclaimed my aunt’s interest in her home back to my aunt as an individual. My sister then received the property interest acting as POA for my aunt. Then…. in a separate transaction, my sister now assuming the role of POA once again… quitclaimed the property interest to her own husband.
This appears to me to be fraud and a violation of being both a POA and a Trustee. It is what I have heard called “self dealing”. These transfers were for “no consideration” back into the trust and it’s important to note that no attorneys were involved and that these transactions were done in one day and consecutively.
I would like any input or opinions about what happened here and if I am correct in my conclusion that this action is wrong and in fact illegal. Is there any possible legal justification for it? What can I do?
Thank You.What is the name of your state?
Hello…
My question relates to the possible abuse of power of attorney (POA) and as a Trustee of a trust. The situation involves my aunt who is in her mid 80s and has Alzheimer’s disease. A year or so ago my sister became her POA and the sole Trustee of her revocable trust. My aunt became unable to live on her own and was declared legally incompetent at this time. My aunt’s only asset in the trust was her home which she had lived in for 50+ years. Her husband has already passed away. After living for a few months in a board & care, she has now been at a nursing home for several months. Medicaid or Medi-Cal as they call it in California is helping to pay for her care.
A few months ago my sister placed my aunt’s home on the market and it has apparently sold in the last few weeks for a little under $500,000. I assumed that as Trustee my sister would be obligated to take the proceeds from the sale of the home and place them into the living trust and to be used only for my aunt’s care. Instead, and what I have found out recently unbeknownst to my sister and through public records, this was not done. What was done was my sister went to the county and acting as Trustee, quitclaimed my aunt’s interest in her home back to my aunt as an individual. My sister then received the property interest acting as POA for my aunt. Then…. in a separate transaction, my sister now assuming the role of POA once again… quitclaimed the property interest to her own husband.
This appears to me to be fraud and a violation of being both a POA and a Trustee. It is what I have heard called “self dealing”. These transfers were for “no consideration” back into the trust and it’s important to note that no attorneys were involved and that these transactions were done in one day and consecutively.
I would like any input or opinions about what happened here and if I am correct in my conclusion that this action is wrong and in fact illegal. Is there any possible legal justification for it? What can I do?
Thank You.What is the name of your state?