Money Taken by Holder of Power of Attorney

[felisha404]

My question involves a person located in the state of: Conn.

My 85 y o mom entrusted my brother with her annuities and life insurance policy. He became the POA on her annuitites, and over 10 yrs helped himself to 300K in pay-outs unbeknownst to her and my 2 sisters.

He also was the owner of her life insurance policy and made himself sole beneficiary.

My mom never intended for him to get pay outs or be the sole beneficiary on her insurance, but she did not understand that when she allowed him to be the OWNER of the policy, he could do whatever he wanted.

Now that he has been "exposed" and is refusing to have contact with us, would we have a difficult time taking legal action? Would it be difficult to prove or show that my mom entrusted him with her funds and life insurance, but never expected him to embezzle her cash?

She wants to change the ownership of the policy. She has always paid the premiums herself. Does she have any legal right to do this, or will that be a struggle in court?

Thanks for all input.

[Mr. Knowitall]

If mom is mentally competent, she may revoke the power of attorney, can rewrite her estate plan in response to the misappropriation, and if she chooses can notify the police of the theft and/or report it as elder financial abuse to DSS. If he won't agree to irrevocably change the beneficiary of the insurance policy, as she probably cannot do that unilaterally with him as the owner, she can commence a legal action for a constructive trust over any insurance proceeds to her estate on the basis that she has paid all of the premiums and did not intend that he be the sole beneficiary.