Detailed Answer
Short answer: Yes — you can challenge transfers made under a power of attorney (POA) in Hawaii if you have reason to believe your grandfather lacked the mental capacity when the POA was signed or when specific transfers were authorized. To succeed, you (or a lawyer) generally must show evidence that the principal (your grandfather) did not understand the nature and consequences of the POA or that the agent acted improperly (for example, by undue influence, fraud, or breach of fiduciary duty). Courts can void transactions, remove the agent, order an accounting, and award damages or other relief.
Key legal concepts (plain language)
- Principal: The person who signed the POA (your grandfather).
- Agent / attorney-in-fact: The person given authority to act under the POA.
- Capacity: The principal’s mental ability to understand what they were signing and the consequences. Capacity is assessed at the time the POA was executed (and sometimes at the time of particular transactions).
- Undue influence: When someone improperly pressures or manipulates the principal into signing a POA or making transfers that are not the principal’s free choice.
- Breach of fiduciary duty: The agent must act in the principal’s best interest. Using powers for personal gain can be a breach.
What Hawaii law says (where to look)
Hawaii’s statutes and court process govern powers of attorney, guardianship, and remedies when an agent abuses authority. For the text of Hawaii statutes, see the Hawaii Revised Statutes online at the Hawaii State Legislature site: https://www.capitol.hawaii.gov/hrscurrent/. For court procedures, forms, and self-help information (including guardianship and protective proceedings), see the Hawaii State Judiciary: https://www.courts.state.hi.us/.
Typical paths to challenge transfers
- Request an accounting and documentation from the agent and banks. Banks often keep a copy of the POA and records of transfers. Ask the agent for written accounting of transactions and request copies of bank statements and transfer records.
- Gather medical and execution evidence. Obtain the POA document, the notary/witness information, medical records around the date of execution, and the names of doctors or caregivers who saw your grandfather at that time.
- Demand that the agent stop transfers (if transfers are ongoing). If your grandfather is still alive and transfers are continuing, an attorney can send a demand letter or ask a bank to freeze accounts while the dispute is resolved.
- File a court petition. Common petitions are to invalidate the POA or particular transfers, to remove the agent, to get a full accounting, and/or to open a guardianship or conservatorship if the principal cannot manage affairs. The court can rescind transfers made under an invalid POA, award restitution, and impose other remedies.
- Civil claims. You can sue the agent for breach of fiduciary duty, fraud, undue influence, conversion, or unjust enrichment if the agent misused funds.
- Criminal referral. If the agent’s conduct appears criminal (theft, fraud), report it to local law enforcement or the county prosecutor.
What courts look for when capacity is contested
Courts consider the principal’s mental state at the time the POA was signed (and sometimes at the time of transfers). Useful evidence includes:
- Medical records, cognitive testing (e.g., MMSE, MoCA), and physicians’ notes near the signing date.
- Testimony from doctors, nurses, caregivers, or family who saw the principal then.
- The circumstances of signing — whether the principal had independent legal advice, whether the agent arranged the signing, presence of suspicious witnesses, or haste or secrecy.
- Whether the language of the POA is broad or unusually favors the agent (a red flag for undue influence).
- Paper trail showing transfers inconsistent with the principal’s prior financial patterns or estate plan.
Practical considerations and timing
Evidence fades and witnesses move away — act quickly. Some remedies have time limits under Hawaii law, and financial institutions will often require a court order or formal dispute to release funds. Even if the principal is now incompetent, family members can ask a court for appointment of a guardian or conservator to protect remaining assets.
How a Hawaii attorney can help
A Hawaii-licensed attorney can:
- Evaluate the POA and concerned transfers under Hawaii law and procedure.
- Collect medical records and witness statements.
- File petitions in the appropriate Hawaii probate or family court for injunctions, accounting, or guardianship.
- Negotiate with banks and the agent to preserve assets and stop improper transfers.
- Bring civil claims or coordinate with law enforcement if criminal activity is suspected.
Where to start right now
- Get a copy of the Power of Attorney document and any records of the questioned transfers.
- Collect medical records or contact the principal’s treating doctor for records covering the date the POA was signed.
- Do not confront the agent alone or attempt to move large sums without legal guidance — that can complicate recovery.
- Contact a Hawaii attorney experienced in elder law, probate, or fiduciary litigation as soon as possible.
Important links: Hawaii Revised Statutes (statutes search and text): https://www.capitol.hawaii.gov/hrscurrent/. Hawaii State Judiciary (court procedures, self-help, and forms): https://www.courts.state.hi.us/.
Disclaimer: This article is educational only and is not legal advice. Laws change and every case depends on its facts. Consult a licensed Hawaii attorney to get advice about your specific situation.
Helpful Hints
- Preserve originals: Keep the original POA and original bank statements in a safe place; make certified copies if needed.
- Document everything: Write down dates, phone calls, who handled transactions, and any unusual conversations or pressure on your grandfather.
- Medical records matter: Ask the doctor’s office for records from around the POA signing date. Records carry strong weight in capacity disputes.
- Ask banks for copies: Request the bank’s copy of the POA and a transaction history as soon as possible.
- Don’t wait: If transfers are ongoing, immediate action (letters, temporary restraining orders, or freezes) can prevent dissipation of assets.
- Consider neutral evaluation: A court-ordered medical or neuropsychological exam may be necessary to establish capacity.
- Talk to a lawyer experienced in elder/estate/guardianship matters in Hawaii — early legal help often preserves more options.