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Cashiers check stopped

Jonesborough, TN |

My husbands Mother made him her power of atty many yrs ago and now his sister has moved back to town and taken their Mother to live with her . The sister has stolen $ 8000 from the mothers checking acct before it was caught . No charges were placed but he has made sure she has no access to her check book no more . She had 32 , 000 in an IRA for her burial and last wishes , which none but my husband and his Mom knew about . His Mom became worried about it and had the bank to issue him a cashiers check for the total amount . He has held onto the check since Feb 1st and yesterday he went to deposit it into another bank for safe keeping and was told that his Mom and sister came into bank last week and revoked his power of atty . he deposited it in a savings acct with only his name . Can payment be stopped ? ?

Attorney Answers 3

Posted

Can payment be stopped? I suppose anything is possible. It does not seem likely, under the circumstances. I guess the question I have, if push comes to legal action...is whether or not your husband's action would be deemed to be a breach of fiduciary duty. He is required to act in his mother's best interest alone. It is hard to see how removing this money could be construed to be in HER best interest. It is likely to generate income tax, if nothing else.

It seems to me that the financial tug of war over the mother is grinding everyone down, and perhaps the mother, most of all. She appears to be a pawn in this situation. Given the fact that your husband's sister has taken advantage of her mother before, I would not feel at all secure with the current arrangement. It appears that if the mother is incapacitated, then a guardian/conservator should be put in place. That *could* be both children, or it could be a totally neutral third party. It does not appear that either child should act on their own. My guess is they will not agree on this and so a judge would not appoint one over the other.

Your husband needs to consult with a probate attorney to decide how best to proceed.

James Frederick

***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you our answer helpful!

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Posted

Generally a cashiers check can not be stopped. There may be a few rare instances where a bank can refuse to honor its cashiers check but the penalty if they are wrong is high so most will not dishonor.

If your husband held a POA he can only act in the interest of his mother. If your husband has taken his mothers money and placed it in an account in his sole name, it might look to others as if he is converting her assets to his use.

Even though it sounds like the daughter does not have her mothers best interest at heart, the decision is still the mothers.

Your husband should consult an attorney about how to handle the funds he has deposited in the savings account to avoid future claims of breach of his fiduciary duty.

This answer does not constitute legal advice nor form an attorney client relationship. I am not your lawyer. If you have a legal issue in Tennessee you may contact me for a free consult.

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Posted

If the cashier's check was in your name, I do not see where you did anything wrong legally. However, it could be looked at as you were keeping it away from your mother. But how would anyone know it had been cashed? I agree that a conservatorship sounds appropriate.

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