Following someone's death, family members may discover financial transactions performed by an agent under a durable power of attorney. Transfers to the agent, unexplained withdrawals, or missing assets may raise concerns about how the agent handled the deceased person's finances.

The person's death does not necessarily eliminate claims arising from misconduct during their lifetime.

Understanding the Agent's Duties

A person acting under a financial power of attorney may owe fiduciary duties to the principal. These obligations can include acting within the authority granted, avoiding unauthorized conflicts of interest, and maintaining appropriate records.

The precise duties depend on applicable law and the governing document.

An agent's ability to withdraw money from an account does not necessarily mean the agent may use those funds for personal benefit.

Reviewing Financial Activity

After death, a personal representative or another authorized person may need to investigate transactions occurring during the principal's incapacity.

Bank statements, canceled checks, account applications, electronic transfers, property deeds, and correspondence can provide relevant evidence.

The investigation should also distinguish legitimate expenses paid for the principal from unauthorized transfers.

Who May Bring a Claim?

Depending on the circumstances, a personal representative may have authority to pursue recovery on behalf of the deceased person's estate.

California law also provides procedures governing challenges to power of attorney activity. Standing, jurisdiction, applicable limitation periods, and the form of relief require careful analysis.

A beneficiary's suspicion alone does not automatically establish a personal right to recover estate assets.

Potential Remedies

Where misconduct is established, possible remedies may include an accounting, recovery of property, damages, or other appropriate relief.

The availability of a particular remedy depends on the nature of the transaction, the evidence, and the applicable legal claims.

Key takeaways

• Review the agent's authority and fiduciary obligations before assessing transactions.

• Preserve financial records that may establish the purpose and recipient of disputed transfers.

• Determine who has standing to pursue recovery after the principal's death.

For Los Angeles County families, a California power of attorney estate claim may provide a means of addressing financial misconduct discovered only after the principal has died.

This article provides general information, not legal advice. For questions involving disputed power of attorney transactions, call Westlake Law Group at (818) 444-2022. 30699 Russell Ranch Road, North Building, Suite 210, Westlake Village, California. Virtual consultations are available throughout Southern California.

Educational links:

• https://leginfo.legislature.ca.gov/faces/codes.xhtml

• https://selfhelp.courts.ca.gov/probate