Maybe. If she is the conservator of the estate, then yes. Should could be the temporary conservator of the estate, again yes.
Other things to consider would be if she were a party to the account, she could claim it is her money or that this was some bizarre estate planning mechanism to ensure that they are cared for. Not too clean but this argument could hold up.
But let's take a step back. Where is father? If he is alive and well then he should probably be chiming in on this.
You have not provided enough detail for a thorough review of your situation. You should consult with local counsel to explore your situation in detail.
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No it is not legal and her attorney should know it. You should advise the PVP attorney immediately of the facts. You should also report it to adult protect services.
All fees for conservatorships, including the establishment thereof must be approved by the court before being paid.
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