Detailed Answer
Short answer: Yes—you can challenge transfers made under a power of attorney in Massachusetts if you have a good-faith basis to believe the principal lacked the mental capacity to sign the power of attorney or that the agent abused their authority. Challenges usually proceed in Probate and Family Court and can seek removal of the agent, an accounting, return of assets, and other relief. Act quickly: banks may not freeze transfers indefinitely and evidence degrades over time.
What Massachusetts law governs powers of attorney?
Powers of attorney and related fiduciary duties in Massachusetts are governed primarily by the Massachusetts Uniform Probate Code (Chapter 190B of the Massachusetts General Laws). For general reference see the statute at the Massachusetts Legislature website: Mass. Gen. Laws Ch. 190B. When elder financial exploitation or criminal conduct is suspected, state elder-protection resources and criminal statutes may also apply (see Massachusetts elder-abuse resources below).
On what legal grounds can transfers under a power of attorney be challenged?
- Lack of capacity at the time the power was executed: The principal must have had sufficient mental capacity when signing the POA to understand the nature and effect of giving an agent authority. If the principal lacked that capacity, the POA can be void or voidable.
- Undue influence or coercion: If someone pressured, coerced, or manipulated the principal into signing the POA or into making transfers, a court can set the document aside and restore assets.
- Agent exceeded authority or breached fiduciary duty: Agents must act according to the POA and in the principal’s best interests. Self-dealing, diversion of funds, or transfers that don’t benefit the principal can support claims (breach of fiduciary duty, conversion, unjust enrichment).
- Improper execution or formal defects: If the POA wasn’t executed according to legal formalities (for example, missing required acknowledgement or witness signature where required), that can be a ground to challenge it.
What evidence is important?
Successful challenges typically rely on multiple types of evidence:
- The original POA and any acknowledgement/notary or witness statements.
- Medical records, physician or neuropsychological reports showing cognitive status around the time the POA was signed and when transfers occurred.
- Contemporaneous notes, dated emails, or witness statements that describe the principal’s condition, conversations, or who was present at signing.
- Bank records and transfer histories showing timing, beneficiaries, and whether transactions were atypical.
- Expert testimony (e.g., a qualified clinician) about capacity and whether the principal understood the transaction.
- Evidence of coercion or suspicious circumstances: isolation of the principal, rushed signings, sudden changes in asset control or beneficiary designations, or transfers that benefit the agent disproportionately.
Typical legal remedies in Massachusetts
- Petition the Probate and Family Court to revoke or declare the POA invalid and to remove or suspend the agent.
- Request an accounting and recovery of improperly transferred funds (restitution, constructive trust, or damages).
- File civil claims for breach of fiduciary duty, conversion, or unjust enrichment.
- Seek injunctive relief or a temporary restraining order to stop further transfers while the court considers the case.
- Report suspected financial exploitation to Adult Protective Services, local law enforcement, or the state elder-abuse hotline—criminal charges can follow in some cases.
Where do you file?
Most challenges involving powers of attorney and alleged incapacity are filed in the Massachusetts Probate and Family Court. For information and local forms, see the court’s site: Massachusetts Probate & Family Court.
Practical, immediate steps to preserve claims
- Preserve evidence: secure the original POA, bank statements, records of transfers, medical records, and any correspondence or witness names.
- Contact the bank quickly. Ask whether the bank will freeze or place a hold on disputed transfers and request copies of supporting documentation the bank relied on (agent’s ID, authorization forms, transaction memos).
- Report suspected elder financial exploitation to Adult Protective Services or local law enforcement. In Massachusetts, see elder-abuse resources: Massachusetts: Elder Abuse & Neglect.
- Talk to an attorney experienced in Massachusetts elder law, probate litigation, or fiduciary litigation. If possible, consult before filing to preserve temporary relief (emergency motions or temporary restraints).
- Act promptly. Delay can make it harder to reverse transfers and may enable the agent to dissipate assets or assert defenses like ratification or laches.
How will a court evaluate capacity?
Courts evaluate capacity at the time the POA was signed. Judges look for evidence that the principal understood:
- the nature and consequences of signing the power of attorney;
- the general value and extent of their property;
- who would benefit from transfers; and
- that signing would authorize another person to act on their behalf.
Capacity is task-specific and time-specific. A short-term episode (e.g., confusion from medication) can be relevant. Medical records and expert testimony are often decisive.
Possible outcomes
- POA declared invalid or rescinded; agent removed.
- Court orders repayment, restitution, or places assets in a constructive trust for the principal.
- Criminal prosecution if exploitation or fraud is proven beyond a reasonable doubt.
- Settlement between parties or negotiated return of funds.
Costs, timelines, and practical realities
Lawsuits in Probate Court can take months to resolve. You should be prepared for litigation costs, potential expert fees, and the emotional strain of proving incapacity. Sometimes a negotiated resolution (demand letter, mediated return of funds) is faster and less costly, but negotiation depends on the agent’s willingness to cooperate.
Where to get help
- Consult a Massachusetts probate/elder-law attorney with experience in POA disputes and fiduciary litigation.
- Massachusetts Probate & Family Court: https://www.mass.gov/orgs/probate-and-family-court.
- Massachusetts elder-abuse information and reporting: https://www.mass.gov/info-details/elder-abuse-and-neglect.
- Massachusetts General Laws, Chapter 190B (Uniform Probate Code): https://malegislature.gov/Laws/GeneralLaws/PartII/TitleII/Chapter190B.
Disclaimer: This article explains general principles of Massachusetts law for educational purposes only. It is not legal advice, does not create an attorney-client relationship, and should not be relied upon as a substitute for consultation with a qualified Massachusetts attorney about the specific facts of your situation.