Detailed Answer — What you need to know under Tennessee law

This section explains the common legal bases, the burden of proof, typical remedies, and practical next steps under Tennessee law. This is a general overview for educational purposes only and is not legal advice.

1. Legal bases for challenging transfers

• Lack of capacity at the time the POA was signed: To be valid, a power of attorney generally requires that the principal had sufficient mental capacity when they signed the document to understand the nature and effect of the POA and the extent of the authority granted. If your grandfather did not understand what he was signing, the POA (and transfers relying on it) can be voided.
• Undue influence or fraud: If someone pressured, tricked, or coerced your grandfather into signing the POA or into authorizing transfers, you can challenge those transactions as products of undue influence or fraud.
• Agent exceeded authority or breached fiduciary duties: Even if the POA was valid, the agent must act within the authority granted and in the principal’s best interest. Unauthorized transfers or clear self-dealing can be challenged as breaches of fiduciary duty.
• Lack of proper execution: If the POA does not meet Tennessee execution formalities (signatures, witnesses/notarization when required), it may be invalid. Tennessee has adopted modern POA rules; consult the statute for execution formalities.

2. Who bears the burden of proof?

The person contesting the transaction (often a family member or interested party) generally bears the burden to prove lack of capacity, undue influence, or other defects. Courts consider medical records, witness testimony, forensic evidence (e.g., handwriting experts), the timing of transfers, and whether the agent personally benefited.

3. Possible remedies in Tennessee

• Ask a court to void or set aside particular transfers.
• Seek an accounting from the agent and restitution of improperly transferred funds or assets.
• Seek removal of the agent and appointment of a conservator or guardian (through Tennessee probate/guardianship procedures) if the principal is now incapacitated.
• Pursue civil claims such as conversion, breach of fiduciary duty, fraud, or unjust enrichment.
• Obtain emergency temporary relief (a TRO or temporary restraining order) to freeze assets if there is an immediate risk assets will be dissipated.

4. Evidence that helps prove lack of capacity or wrongdoing

Useful evidence includes:

• Medical records around the time the POA was signed (neurology, psychiatry, primary care notes).
• Doctor testimony or affidavits about diagnosis (dementia, delirium, stroke, etc.) and cognitive function at signing.
• Witness statements from the signing meeting (who attended, what was explained).
• Copies of the POA, bank records, wire instructions, and documents showing the transfers.
• Evidence of the agent’s financial benefit from transfers (large gifts to the agent, transfers to third parties connected to the agent).
• Patterns of isolation or sudden change in estate planning that suggest undue influence.

5. Key Tennessee statutes and resources to consult

Tennessee’s power of attorney law is codified in the Tennessee Code Annotated (the Uniform Power of Attorney Act). See Tenn. Code Ann. § 34-6-101 et seq. for definitions, execution rules, agent authority, and agent duties. You can review Tennessee’s statutes and text at the Tennessee General Assembly website: https://www.capitol.tn.gov/. The state consumer page about powers of attorney is also a helpful practical resource: https://www.tn.gov/commerce/consumer-resources/power-of-attorney.html.

6. Timing and statute of limitations

Act promptly. Evidence (medical records, witnesses) becomes harder to obtain over time. Different claims may have different limitation periods. Because procedural time limits can defeat a case, consult a Tennessee attorney promptly to preserve claims and request emergency relief if assets remain at risk.

7. Practical steps to take right now

1. Preserve documents: Get copies of the POA, bank statements, wire confirmations, deeds, and any transaction paperwork.
2. Secure medical records: Request your grandfather’s medical records around the date the POA was signed and around the dates of concerning transactions.
3. Talk to the financial institutions: Explain concerns and ask whether they will freeze suspicious transfers or provide transaction histories. Banks often require a court order but may voluntarily restrict further transfers if presented with evidence.
4. Gather witness contact info: Who attended the signing? Who discussed the POA with your grandfather?
5. Contact a Tennessee probate or elder-law attorney: An attorney can evaluate the situation, file petitions (for emergency relief or to set aside transfers), and represent you in court.

8. Typical court process in Tennessee

Challenging transfers usually involves filing a civil action in the appropriate probate or chancery court. The court may require an accounting, hold hearings on capacity and undue influence, and, if appropriate, order remedies described above. If the principal is currently incapacitated, you may simultaneously seek appointment of a conservator or guardian to protect remaining assets.

Helpful Hints

• Act quickly. Evidence and legal rights can disappear with delay.
• Don’t confront the agent alone about assets — it may lead to loss of evidence or further improper transfers.
• Request a full accounting in writing from the agent; agents must keep clear records of actions taken for the principal’s benefit.
• Look for red flags: large unexplained gifts to the agent, recently changed estate documents concentrated in one beneficiary, or isolation of the principal from family and advisors.
• Medical records are often the strongest evidence of incapacity. Obtain records with signed HIPAA release if you can; otherwise, an attorney can assist with subpoenas or court orders.
• If you need emergency relief (risk of money being moved out of reach), ask an attorney to file for immediate injunctive relief in Tennessee probate/chancery court.
• Keep a written timeline of events, who said what, and when transactions occurred — courts rely on organized, chronological evidence.
• Contact local adult protective services or law enforcement if you suspect financial exploitation or elder abuse; reporting can prompt investigations that produce useful evidence.