Can I challenge transfers made under a power of attorney if I suspect my grandfather lacked capacity?

Short answer: Yes — you can often challenge transfers made under a power of attorney (POA) in Maine if you have a good reason to believe the principal (your grandfather) lacked the mental capacity to sign the POA or that the agent misused it. The challenge typically proceeds in probate or civil court and may lead to rescinding the transfers, removing the agent, and recovering funds. This article explains how capacity and undue influence are evaluated in Maine, what steps you can take, and what evidence helps a court decide.

Disclaimer

This is general information, not legal advice. I am not a lawyer. For advice about your specific situation, consult a licensed Maine attorney.

Detailed answer — Maine law, the issues, and the steps to challenge transfers

1. Key legal issues: capacity, authority, and misuse

When you challenge a transfer made under a POA, courts in Maine will usually focus on three related questions:

• Capacity at signing: Did your grandfather have the mental capacity to understand the nature and consequences of signing the POA when he signed it?
• Scope and authority: Did the POA actually authorize the kinds of transfers the agent made? (Sometimes the document is limited.)
• Misuse, breach of fiduciary duty, or undue influence: Even if the POA was valid, did the agent exceed authority, act in bad faith, or push the principal into signing or making transfers?

2. Mental capacity standard

Under general Maine probate practice, capacity to execute a power of attorney requires that the principal understand (1) the nature and effect of a POA, (2) the property and relationships affected, and (3) the identity of the agent and the scope of that agent’s authority. If the principal could not understand these things because of dementia, delirium, treatment effects, or other cognitive impairment, the POA may be void.

Courts look at the principal’s condition when the document was signed. Medical records, contemporaneous notes (doctor, hospital, social worker), testimony from witnesses to signing (including the notary or witnesses), and observations from family can all help establish whether the principal had capacity.

3. Undue influence and breach of fiduciary duty

Undue influence usually requires showing that an agent or other person put improper pressure on the principal so that the principal’s free will was overcome. Factors courts consider include the principal’s vulnerability, the influencer’s opportunity to exert pressure, the influencer’s active participation in the transaction, and whether the result was an unexpected or suspicious transfer favoring the influencer.

4. Typical remedies

If successful, a challenge can result in several remedies, including:

• Invalidation of the POA as executed (if lack of capacity is proven).
• Reversal or rescission of improper transfers and return of funds or property.
• Removal of the agent and an accounting by the agent for transactions made.
• Damages for breach of fiduciary duty and possibly punitive damages if there was egregious misconduct.

5. Where to bring a challenge

Challenges involving the validity of a power of attorney or requests to remove an agent usually are handled in Maine Probate Court or through civil actions in Superior Court depending on the relief sought (accounting, return of property, tort claims). If the situation is urgent — for example, ongoing transfers or risk the agent will dissipate assets — you can ask the probate or civil court for temporary emergency relief (a freeze or injunction) to stop further transfers while the case proceeds.

6. Evidence that helps

Strong evidence commonly used includes:

• Copies of the POA and any amendments (compare dates and witnesses).
• Bank records and transfer histories showing the timing and recipients of transfers.
• Medical records around the date the POA was signed (hospital notes, neurology or psychiatry evaluations, medication lists, delirium indicators).
• Testimony from the notary, witnesses, family members, and healthcare professionals.
• Communications showing pressure or suspicious behavior (texts, emails, voicemail, handwritten notes).
• Forensic evidence when handwriting authenticity or signatures are disputed.

7. Practical steps to take right away

1. Preserve evidence. Make copies of the POA, bank statements, checks, titles, and any communications.
2. Contact financial institutions. Tell banks your concerns and ask for transaction histories and a temporary hold if possible.
3. Check whether the POA has a notarization/witness and when it was recorded (if applicable).
4. Get medical records around the execution date. Request hospital or physician notes that might document confusion, dementia, or incapacity.
5. Document who witnessed the signature and how it was obtained. A witness or the notary’s statement can be critical.
6. Consider filing an emergency petition in probate or a civil action if transfers are ongoing or assets are at risk.
7. Report suspected financial exploitation to Maine adult protective services and local law enforcement if you suspect criminal conduct: Maine Department of Health and Human Services (DHHS) Adult Protective Services may assist; see https://www.maine.gov/dhhs/ for contact information.

8. Timing and statutes of limitation

Statutes of limitations vary depending on the type of claim (challenge to instrument validity, breach of fiduciary duty, conversion, fraud). Act promptly. Even if a formal statute of limitations would allow delay, delaying investigation risks loss of evidence and dissipation of assets. If you suspect wrongdoing, immediate steps (bank freezes, emergency petitions) are important.

9. Who has standing to challenge?

Typically close relatives, heirs, beneficiaries, or an appointed guardian or conservator can challenge a POA or transfers. If you are unsure whether you have legal standing, talk with a probate attorney who can evaluate your relationship and likely rights to bring a claim in Maine Probate Court or Superior Court.

10. Criminal and administrative routes

If you suspect criminal financial exploitation or theft, you can report the conduct to local law enforcement and the district attorney. Adult Protective Services can investigate exploitation of vulnerable adults. Banks may also file suspicious activity reports and sometimes can reverse transfers if the transfers are recent and meet bank policies.

Statutes and official resources (Maine)

Key places to look for Maine law and forms:

• Maine Legislature — statutes and searchable database: https://legislature.maine.gov/statutes/
• Maine Judicial Branch — probate court information and forms (probate matters, guardianship, conservatorship): https://www.courts.maine.gov/
• Maine Department of Health and Human Services — adult protective services and reporting suspected exploitation: https://www.maine.gov/dhhs/

Note: Maine has specific statutes and procedural rules that govern powers of attorney, guardianships/conservatorships, and probate procedures. If you plan to file a formal challenge, your attorney will cite the precise Maine statutes and rules relevant to your case.

Helpful Hints — practical guidance to strengthen your challenge

• Act quickly. Freeze or flag accounts if possible so assets aren’t moved before you can seek court relief.
• Collect medical records around the POA signing date — these are often the most persuasive evidence of incapacity.
• Talk to the notary and any witnesses right away; ask them to preserve any notes or recollections in writing.
• Ask the bank for a complete transaction ledger and any records of who presented paperwork and when.
• Don’t confront the agent directly if that will create greater risk to assets — discuss strategy with an attorney or Adult Protective Services first.
• Consider a forensic accountant if transactions are numerous or complex — their report can be powerful in court.
• Keep a detailed chronology of events: dates of POA execution, transfers, contacts, and observations about your grandfather’s condition.
• Be prepared for costs and time: contested probate and civil litigation can be expensive and may take months; emergency relief is available in urgent situations.
• If the agent is a bank, trust company, or professional fiduciary, federal and state rules may impose additional duties — banks often have internal procedures and records you can subpoena.
• Consult a Maine probate or elder law attorney early — they can advise on whether to file a petition to void the POA, seek removal of the agent, or pursue damages.

Example hypothetical

Suppose your grandfather, who has known dementia, was hospitalized and, while on heavy medications, signed a POA that appointed a nephew as agent. Within two weeks the nephew transferred $150,000 from your grandfather’s accounts into his own. You discover the transfers and suspect your grandfather lacked capacity at signing. Reasonable steps include: (1) obtaining the POA copy, (2) getting hospital records showing confusion and medication effects at the signing date, (3) asking the bank to freeze further transfers and provide records, (4) filing an emergency petition in probate court to void the POA and recover funds, and (5) notifying Adult Protective Services and law enforcement if theft is suspected.

Next steps

If you think a transfer under a POA was improper, collect the documents and evidence listed above and consult a Maine attorney experienced with probate, elder law, or civil litigation. If assets are being dissipated now, seek immediate emergency relief from probate or civil court.