Mutual funds for siblings and myself stolen by (former) step-parent?

[NickBara]

What is the name of your state (only U.S. law)? Pennsylvania

My father created 5 - $10,000 mutual funds for myself and 4 siblings for a total of $50,000 with his settlement money he received from a work-related injury. Unfortunately, he also got in trouble with his pain-killers after using them for years and getting addicted, so he was in jail and waiting to be sentenced. In this time he had to make a Power of Attorney for my step-mother to handle the finances for lawyer, legal cost, and home expenses. She basically took all of his money, drained our mutual funds, and then divorced him.

I had been out of contact with them for quite a while, so I am just now learning about this and wanted to know if this is even legal? If I confronted her about it would I have any laws on my side? The part that bothers me the most about it is that with all that money she took, she doesn't use any of it on her (my half-sister) 9 year old daughter, whom hasn't had new clothes in years or toys, etc. Meanwhile, she has been caught smoking weed with her (my step-brother) 17 year old son.

Obviously I could get more info collected, but my dad has been through a lot and is just trying to be a better person and have a good life from here on out, and I don't want to get his hopes up for nothing. Also, I am not trying to create a huge family battle since she has the main custody of my half-sister. I just wanted to make sure I had the winning hand on my side before I made any moves and probed for more info.

 

[Zigner]

It sound like you have no standing to do anything about this. Your father will need to be the one to act.

 

[adjusterjack]

I just wanted to make sure I had the winning hand on my side before I made any moves and probed for more info.

Agree with Zigner, you have no standing to make any moves, not from a legal standpoint anyway.

But it might help you to know that what your stepmother did violates the PA Power of Attorney Act:

(b) Limitation.--Notwithstanding a grant of authority to do an act described in subsection (a), unless the power of attorney otherwise provides, an agent that is not an ancestor, spouse or descendant of the principal may not exercise authority under a power of attorney to create in the agent, or in an individual to whom the agent owes a legal obligation of support, an interest in the principal's property, whether by gift, right of survivorship, beneficiary designation, disclaimer or otherwise.

http://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/20/00.056..HTM

I don't see any penalties in there and I don't have time to look up criminal statutes but at least that gives your father (not you) grounds to take legal action to try to recover the money.

 

[Zigner]

But it might help you to know that what your stepmother did violates the PA Power of Attorney Act:

I would only go so far as to say it may violate the PA POA Act. We don't know if the OP was acting upon the specific direction of the OP's dad, nor do we know what the money was actually used for (it may have gone to legal fees.) I'm not saying you're wrong, just that we really don't have enough info.

 

[Dandy Don]

Timeline is important so that someone can determine if statute of limitations applies.

What year was she given power of attorney and what year did the divorce occur?

He needs to revoke/cancel the power of attorney if he has not already done so.

Ask him to contact the mutual funds company to request a copy of the beneficiary designations he had on the accounts to see if she submitted a beneficiary designation change to name herself as beneficiary of the funds before she cashed them out. If she in fact did that, he would need to check with a business law attorney or family law attorney to determine if she could be charged with abuse of POA if such beneficiary designations are not allowed by Pennsylvania law.

 

[justalayman]

What is the name of your state (only U.S. law)? Pennsylvania

My father created 5 - $10,000 mutual funds for myself and 4 siblings for a total of $50,000 with his settlement money he received from a work-related injury. Unfortunately, he also got in trouble with his pain-killers after using them for years and getting addicted, so he was in jail and waiting to be sentenced. In this time he had to make a Power of Attorney for my step-mother to handle the finances for lawyer, legal cost, and home expenses. She basically took all of his money, drained our mutual funds, and then divorced him.

I had been out of contact with them for quite a while, so I am just now learning about this and wanted to know if this is even legal? If I confronted her about it would I have any laws on my side? The part that bothers me the most about it is that with all that money she took, she doesn't use any of it on her (my half-sister) 9 year old daughter, whom hasn't had new clothes in years or toys, etc. Meanwhile, she has been caught smoking weed with her (my step-brother) 17 year old son.

Obviously I could get more info collected, but my dad has been through a lot and is just trying to be a better person and have a good life from here on out, and I don't want to get his hopes up for nothing. Also, I am not trying to create a huge family battle since she has the main custody of my half-sister. I just wanted to make sure I had the winning hand on my side before I made any moves and probed for more info.

you don't have a winning hand. In fact, you aren't even in the game.

This is between your father and step mother and by the sound of things, it's likely way too late for your father to do anything about anything.

But to delve into things a bit; how long ago were they divorced? How long before
That was the POA granted?