Disclaimer

This article is educational only and is not legal advice. For advice about a specific situation, consult a licensed Rhode Island attorney who handles elder law, probate, or fiduciary litigation.

Detailed Answer — How challenges work in Rhode Island

When a person (the “principal”) signs a power of attorney (POA), they give another person (the “agent” or “attorney-in-fact”) authority to act for them. Transfers made by an agent under a POA can be challenged in Rhode Island if the principal lacked the required mental capacity when the POA was executed or when the agent made the transfers, or if the agent abused their power (for example, by committing fraud, undue influence, or self-dealing).

Key legal grounds to challenge transfers

• Lack of capacity when the POA was signed: A POA is voidable if the principal did not understand the nature and consequences of granting the authority. Challengers must show the principal lacked the mental ability to comprehend the document and its effects at signing.
• Lack of capacity when the transfers occurred: Even if the POA itself was valid, transfers can be invalid if the principal had lost capacity and the agent acted beyond permitted authority or without a valid continuing POA.
• Undue influence or fraud: If someone coerced or tricked the principal into signing the POA or into accepting transfers, a court may void the POA or set aside specific transfers.
• Breach of fiduciary duty or self-dealing: Agents owe duties to the principal. If an agent uses assets for their own benefit or acts in ways contrary to the principal’s interests, courts can order remedies.
• Forgery or improper execution: If the POA was forged or was not properly signed/notarized per state formalities, it can be invalidated.

Who decides and where to bring the claim

Challenges can arise in different forums depending on the remedy sought. Matters involving guardianship or conservatorship (to protect a person who lacks capacity) are handled by the Rhode Island courts that hear probate and guardianship matters. Civil lawsuits to recover assets, impose a constructive trust, seek damages, or remove an agent are typically brought in state civil court. If you are unsure where to file, an attorney can advise which court is appropriate.

What must a challenger prove

The challenger generally must produce evidence showing:

• When and how the POA was signed and what powers it granted;
• Evidence of the principal’s mental condition at the relevant time (medical records, physician testimony, contemporaneous notes, witness testimony showing confusion, memory loss, or inability to understand the POA’s nature);
• Bank records and transfer documentation showing what the agent did and whether transfers were authorized, unusual, or benefitted the agent;
• Evidence of coercion, misrepresentation, or forgery if those are alleged.

Possible remedies

If the court finds the POA or particular transfers invalid or the agent breached duties, remedies may include:

• Setting aside or reversing transfers and ordering the return of assets;
• Imposing a constructive trust over property obtained improperly;
• Damages for financial loss caused by the agent;
• Removal of the agent and appointment of a guardian or conservator; and
• Criminal referral if fraud or theft is evident.

Statutes and official Rhode Island resources

Rhode Island handles powers of attorney, guardianship, and probate issues under state law and court rules. For official procedural guidance and forms, see the Rhode Island Judiciary’s pages about guardianship and conservatorship:

• Rhode Island Judiciary — Guardianship & Conservatorship
• Rhode Island General Laws (statutes) — searchable index — use this site to search for statutes relevant to wills, estates, and fiduciary duties.
• Rhode Island Secretary of State — general information about notarization and records.

Use the legislature site above to locate specific statutes about powers of attorney, fiduciary obligations, and probate procedure. If you plan to rely on a particular statutory section in court, an attorney will confirm the correct citation and the most recent law.

Typical timeline and evidence-gathering steps

Typical steps to challenge transfers:

1. Preserve evidence: make copies of the POA, bank statements, deeds, and communications.
2. Collect medical records that speak to capacity near the time of signing and transfers.
3. Identify witnesses who saw the principal around the time the POA was signed or transfers happened.
4. Demand an accounting from the agent (sometimes this triggers a voluntary remediation).
5. If harm is ongoing, consider emergency steps such as filing for temporary guardianship or asking a court to freeze assets while the dispute is resolved.
6. Consult and hire an attorney experienced with elder law, probate litigation, or fiduciary litigation in Rhode Island.

Helpful Hints

• Act quickly. Evidence (medical records, witness memories, bank records) can disappear or be changed.
• Get certified copies of the POA and any deed or account documents showing transfers.
• Request the principal’s medical records from doctors and hospitals for the relevant time periods; those records are often key to proving capacity or lack of it.
• Look for red flags: sudden changes to estate plans, large or unexplained transfers to the agent, transfers to unknown third parties, or missing records.
• Ask banks for a copy of their documents showing how they accepted the POA (bank acknowledgment, signature card, or internal notes). Some banks require specific language or notarization before honoring a POA.
• Consider a professional forensic accountant if complex transfers occurred; they can trace where money went and provide testimony.
• If the principal presently lacks capacity and remains at risk, talk with an attorney about emergency guardianship/conservatorship to protect remaining assets.
• Keep communications documented. Send written requests and keep copies of letters, emails, and receipts.
• Use the Rhode Island Judiciary resources linked above to learn more about forms and local court procedures.