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  1. #1
    Join Date
    Oct 2007
    Posts
    3

    Default Can a Power of Attorney Holder Be Sued for Financial Decisons

    My husband has just been named POA for my mother, who is blind and has just been moved into a nursing home. She has $14,000 in unsecured debt (credit cards and loans), plus a house and car, both of which are worth less than she owes on them. The car has just been repossessed. She made very poor financial decisions after my father died, but I also feel she was very much preyed upon by all these people.

    My question is: can he (we) be sued for financial decisions he makes on her behalf? He is considering letting the house go into foreclosure, since she can't pay for nursing home care and the house both. He is dealing with creditors, mainly unsuccessfully, and we are currently checking into bankruptcy as an option for her.

    My main concerns are: can creditors sue HIM for not paying her bills? Can they garnish Social Security and a disability retirement? State of record is Washington.

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,633

    Default Re: Can POA be Sued for Financial Decisons

    If he is acting as a fiduciary and violates his fiduciary duties, he can be held responsible for his actions. If he is not comfortable managing her estate, he should consider exploring such options as having a court appoint a guardian to manage her estate.

  3. #3
    Join Date
    Oct 2007
    Posts
    3

    Default Re: Can POA be Sued for Financial Decisons

    So does not paying certain creditors (the guy who charged her $2000 for a vacuum cleaner, for example) and allowing her house to go into foreclosure constitute a violation of his fiducary duties? We are trying to find a way for her to afford her nursing home, and some bills have to disappear somehow.

  4. #4
    Join Date
    Jul 2006
    Location
    Bikini Atoll
    Posts
    163

    Default Re: Can POA be Sued for Financial Decisons

    Quote Quoting golfpro
    View Post
    So does not paying certain creditors (the guy who charged her $2000 for a vacuum cleaner, for example) and allowing her house to go into foreclosure constitute a violation of his fiducary duties? We are trying to find a way for her to afford her nursing home, and some bills have to disappear somehow.
    Check into bankruptcy.

  5. #5
    Join Date
    Oct 2007
    Posts
    3

    Default Re: Can POA be Sued for Financial Decisons

    Gee, no offense people, but is anyone listening to the question? We ARE checking into bankruptcy, as my first post says. My question is, can a POA be sued for financial decisions made on behalf of the person? If the house goes into foreclosure, can the bank come after the POA for the money? That's my only question. We are not going to do a guardianship.

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