QUESTION
Can a spouse who gains POA empty a pay upon death bank account made out to the brother of the account holder?
Asked on Jan 23rd, 2014 on Estate Planning - Colorado
More details to this question:
I have been told that a POD account is similar to a life insurance policy and cannot be changed by anyone but the account holder. This was an account in CO for a sum of $134,000. The account was emptied approximately two months before the death of the person showing legal POA paperwork. After the death, the name of the person named on POD was sent a check for approximately $500,000. I have been told that the state I live in (NJ) could be an unlawful act with criminal punishment.
1 ANSWER
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Unless the agent under the POA was somehow entitled to the funds (unlikely), than the funds should have been paid into the estate of the decedent. It could be a criminal act, including elder abuse. There also is civil recourse in Colorado for claims such as breach of fiduciary duty, fraud, civil theft, etc. You would probably need to open probate in Colorado to be able to get the needed disclosures from the bank (and the agent). It is likely that the court would order the estate to reimburse whoever looks into this for their attorney fees, since it is acting on behalf of the estate. In a case like this, we would try to get the court to order the agent under POA to pay the fees (and some of the claims above have treble (3x) damages plus fees). We handle this sort of litigation if you are looking for help.
Answered on Jan 28th, 2014 at 12:08 PM