Suspected Misuse of Power of Attorney

What is the name of your state (only U.S. law)? NY
My brother, who lives in CA, has POA for our 88 year old mother, who lives in NYC. I'd like to find out whether he has misused his POA by using her credit as a means of obtaining credit cards for himself. He's been unemployed for a very long time yet seems to not have money issues. I suspect he's been paying minimum amounts due on credit issued to him, having abused his POA. Her recent credit reports reveal suspicious inquiries from credit agencies she never authorized, and I get no satisfaction having phoned the credit agencies listed as inquirers on her credit reports. Would the jurisdiction be CA or NY in this case, and where do I begin? I also live in CA. THANKS!

bridget24 said:

What is the name of your state (only U.S. law)? NY
My brother, who lives in CA, has POA for our 88 year old mother, who lives in NYC. I'd like to find out whether he has misused his POA by using her credit as a means of obtaining credit cards for himself. He's been unemployed for a very long time yet seems to not have money issues. I suspect he's been paying minimum amounts due on credit issued to him, having abused his POA. Her recent credit reports reveal suspicious inquiries from credit agencies she never authorized, and I get no satisfaction having phoned the credit agencies listed as inquirers on her credit reports. Would the jurisdiction be CA or NY in this case, and where do I begin? I also live in CA. THANKS!

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Without any legal authorization from your mother, no credit agencies will talk with you. How did you get a copy of mom's credit report?

Jurisdiction is in NY. What did mom say about all this when you asked her?

I told Mom I wanted to check her credit data to make sure there was no funny business following a lost wallet episode she had in Fall of 2007. She agreed to let me invstigate, is how I was authorized to run her credit report(s). Separately, I had a recent dispute with my brother, who refused to give me a copy of his Power of Attorney (the fact he had obtained her POA he hid from me for an entire year). The dispute and his refusal to let me see his POA gave rise to my current suspicions. My mother's two charge cards lost with her wallet were promptly cancelled by her in 2007. The inquiries I now question are from 2008.

bridget24 said:

I told Mom I wanted to check her credit data to make sure there was no funny business following a lost wallet episode she had in Fall of 2007. She agreed to let me invstigate, is how I was authorized to run her credit report(s). Separately, I had a recent dispute with my brother, who refused to give me a copy of his Power of Attorney (the fact he had obtained her POA he hid from me for an entire year). The dispute and his refusal to let me see his POA gave rise to my current suspicions. My mother's two charge cards lost with her wallet were promptly cancelled by her in 2007. The inquiries I now question are from 2008.

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Thank you. What did mom say about your suspicions regarding your brother?

I didn't broach the subject of that possibility with Mom. She has already told me she gave him a major loan several years ago, "...which I can only hope I'll live to see him repay. . ." Then at a lawyer's office last November, during initial phases of obtaining a new POA giving both my brother and me assignment (this has yet to be effected, though she's willing), I hinted at the possibility my brother could try to ace me out of some inheritance if only his name remained on her POA -- together with her will which fuzzily states the two of us as co-executors should "share and share alike" all proceeds of her estate. She said, "I don't think he'd ever do such a thing." Yeah, right. . . By the way, are you a lawyer? Are you positive the jurisdiction is NY? Thank you so much!

bridget24 said:

I didn't broach the subject of that possibility with Mom. She has already told me she gave him a major loan several years ago, "...which I can only hope I'll live to see him repay. . ." Then at a lawyer's office last November, during initial phases of obtaining a new POA giving both my brother and me assignment (this has yet to be effected, though she's willing), I hinted at the possibility my brother could try to ace me out of some inheritance if only his name remained on her POA -- together with her will which fuzzily states the two of us as co-executors should "share and share alike" all proceeds of her estate. She said, "I don't think he'd ever do such a thing." Yeah, right. . .

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The problem is that your mother is competent. Mom needs to make you in charge of her finances. Though states have laws regarding abuse of POA's, your competent mother is allowing your brother to do what he is doing. What a fiasco this will be upon mom's passing!

By the way, are you a lawyer? Are you positive the jurisdiction is NY?

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No, I'm not a lawyer. I'm a fiduciary with several different fiduciary responsibilities. Jurisdiction is where mom lives (NY).

Thank you so much

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You're welcome.

Last questions! Will a revised POA designating my brother AND me, be a solution? I plan to ask Mom's NY lawyer now hatching this new POA to add language specifying BOTH our signatures be required for all decisions and transactions, but only one necessary for inquiries, reports and statements.

I doubt Mom will give me 100 percent control of her finances. It was a hard sell getting her to agree to a new POA with BOTH me and my brother as assignees. I want to AVOID any & all attrition farces coming at me following my mother's death!

Assuming I obtain proof of his abuse of POA privilege, can I sue my brother (in CA or NY?) for siphoning my share of her inheritance?

bridget24 said:

Last questions! Will a revised POA designating my brother AND me, be a solution? I plan to ask Mom's NY lawyer now hatching this new POA to add language specifying BOTH our signatures be required for all decisions and transactions, but only one necessary for inquiries, reports and statements.

I doubt Mom will give me 100 percent control of her finances. It was a hard sell getting her to agree to a new POA with BOTH me and my brother as assignees. I want to AVOID any & all attrition farces coming at me following my mother's death!

Assuming I obtain proof of his abuse of POA privilege, can I sue my brother (in CA or NY?) for siphoning my share of her inheritance?

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Bridget, it is a really, really, really, really, really bad idea to have co-power with another. A better idea is to have you as 1st agent and brother as alternative to take over should you be incapable to be in charge.

While your mother is competent, she is the one to sue your brother which does not seem she would from your postings of this situation. Now, if your mother was incompetent, that would be a different story.

Remember, your mother is in NY. Even probate when she passes will be in NY. That's why any legal suit needs to be in NY. This is not federal, it is state governed by that state's statutes.