Can a person with POA sign papers for the trustee, stating the trustee borrowed money from POA and put a lein against property?

Asked 12 months ago - Gilbertsville, KY

My uncle was my grandmothers POA. He put a lein against her home before she passed away in 2004, stating she borrowed $15,000.00 from him. He never probated the will, and stayed in her home until he passed away March 16,2013. He also took a loan against her home for $43,000.00 as POA ( before her death) and has only made interest pmts since. Nothing was ever taken out of my grandmothers name. So is the lien legal since he signed it all himself?

Attorney answers (1)

  1. Michelle Marie Arostegui

    Contributor Level 4

    Answered . Your question is a bit complicated. The term "trustee" usually involves a trust, and I don't see in the facts given that a trust was ever created. Perhaps you are referring simply to the power of attorney that the uncle held, giving him the ability to sign for his mother (your grandmother). There are several separate issues involved here, which makes answering very problematic. First, the uncle's lien against grandma's home could be valid if she did in fact borrow money and never repaid or defaulted on her repayments. The second issue that I see is that he took a loan against her home as the POA. Was the loan for her benefit or his? There could be some fraud involved, but if the $43K was used for her benefit, then there may not be an issue. The third issue is that both are deceased at this point, so it may be difficult to find the documentation that will solidify what is actually going on. Because this involves two decedent estates, and a multitude of issues, I would advise you to consult with a probate attorney.

    Answers by this attorney are merely to provide educational information on topics related to estate planning. This... more

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