What action can I take against my sister's if I believe they abused thier Power of Attorney?

Full question:

My 2 sisters and I are all beneficiaries to my fathers estate, who passed away 1yr ago. It was not until after he died I found out they took him to another attorney and had him make them Power of attorneys, I also found out after his death, they took him to a bank, and had him take a loan against his house that had no mortgage, for $100,000, he was 86, it was a 30 year loan no co -signers ( they lived and still do live in his house along with 1 of their husbands) never payed any bills, my father payed everything, and yes they all work, they would write ck from his checking account and have him sign them, I always thought they helped pay the bills, They want to buy my share of the house out but their lawyer and them tell me I am responsible for 1 3rd of the loan because it was my fathers loan, and they fixed up the house with it, they also drained his entire bank account. about $200,000..by the way my father was dignosed with moderate dementia before they did any of this... Help what can I do? By the way, the lawyer they took him to to get them to be Power of attorney is now their lawyer. Help I have a lawyer, I just want to see what action you would take...not only the loan, but what else I can do ?

• Category: Power of Attorney
• Date: 04/07/2025
• State: Connecticut

Answer:

A power of attorney is a legal instrument that individuals create and sign that gives someone else the authority to make certain decisions and act for the signer. The person who has these powers is called an "agent" or "attorney-in-fact." The signer is the "principal." The principal must have mental capacity to make the power of attorney at the time of signing. As a principal, if the principal's decisions conflict with those of the agent, the principal's decision will govern, assuming that the agent confers with the principal prior to taking an action. If an agent has acted on the principal's behalf and acted within the scope of authority granted by the power of attorney, then the principal may be obligated by the terms and conditions of his actions. The power of attorney is not a substitute for a will. Upon the principal's death, either the will or the state's law of intestacy will govern the distribution of the estate.

The person designated to be the agent assumes certain responsibilities. The agent is obligated to act in the principal's best interest. The agent must always follow the principal's directions. Agents are "fiduciaries," which means that the agent must act with the highest degree of good faith in behalf of their principals. The agent must keep his money separate from the principal's; keep detailed records concerning all transactions he engages in on the principal's behalf; not stand to profit by any transaction where the agent represents the principal's interests; and not make a gift or otherwise transfer any of the principal's money, personal property, or real estate to himself unless the power of attorney explicitly states he can do so.

Generally, an agent will not be liable for the debts of the principal, unless the debts are a result of the bad faith or dishonest behavior of the agent or unless the agent acquires the debts jointly with the principal. Upon the death of the principal, the executor of his or her estate will handle the payment of outstanding debts.

Various rememdies may be available if a fiduciary duty was breached. Common actions for an abuse of a power of attorney, among others, include a petition for an accounting, claim of breach of fiduciary duty, theft, conversion, or a fraud charge. Please see the following information for further discussion:

http://www.wisbar.org/AM/Template.cfm?Section=Wisconsin_Lawyer&template=/CM/ContentDisplay.cfm&contentid=49953