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I believe my deceased aunt's Power of Attorney was used to change her wishes

I believe my deceased aunt's Power of Attorney was used to change her wishes

Q: Does a will override a beneficiary on a bank account?

No, a will does not override a beneficiary designation on a bank account. The funds in the account will go directly to the named beneficiary upon the account holder's death, regardless of what the will states. This is because beneficiary designations are considered contractual agreements with the financial institution.

Q: What happens to a CD if there is no beneficiary?

If there is no beneficiary named on a CD, the funds will typically be included in the deceased's estate. The distribution of these funds will follow the instructions in the will or, if there is no will, the state's intestacy laws. This may lead to a longer probate process.

Q: Is there a penalty on a CD if the owner dies?

Generally, if the owner of a CD dies, the financial institution may waive early withdrawal penalties for the beneficiaries. However, this can vary by institution and specific account terms, so it's important to check with the bank or credit union for their policies.

Q: Who gets the money if there is no beneficiary?

If there is no beneficiary designated, the money will go to the deceased's estate. It will be distributed according to the terms of the will or, if there is no will, according to state intestacy laws. This means that the funds may be divided among heirs as determined by law.

Full question:

It was unknown to us at the time, my deceased aunt's power of attorney (also a heir) changed the beneficiaries on all her cds to his name. Do we have any recourse to get these cds to the persons she originally designated them for?

Category: Wills and Estates
Date: 04/07/2025
State: National

Answer:

The answer will depend on the powers granted in the document and the facts and circumstances involved. A power of attorney may allow the person appointed to make gifts to themself. However, a power of attorney may be abused by changing beneficiary designations on investments, and opening bank accounts with joint title or pay on death provisions in favor of the agent. The obligations of the fiduciary duty as "attorney-in-fact" are to act in the best interests of the person giving of the power.

If the power-of-attorney is silent as to the power to gift to directly to the agent himself, the state is likely to have cases that have come through the courts that have found gifting by such a power-of-attorney document are a breach of fiduciary duty, voidable, and perhaps, illegal. If the principal has passed away by the time the power of attorney abuse has been discovered, the principal's estate or the intended beneficiaries of the property may be able to sue the agent for breach of fiduciary duty, tortious interference with estate planning, or a number of other causes of action.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can power of attorney be challenged after death?

Yes, a power of attorney can be challenged after the principal's death. Once the principal passes away, the authority granted under the power of attorney ends. If there are concerns about the agent's actions while the principal was alive, such as misusing their authority, interested parties may have grounds to contest those actions in court.

What if there is no beneficiary on a CD?

If there is no beneficiary designated on a certificate of deposit (CD), the funds typically become part of the deceased's estate. The estate will then be distributed according to the terms of the will or, if there is no will, according to state intestacy laws. This process may take longer than if there were a designated beneficiary.