Detailed answer

If you believe financial transfers were made on behalf of an older person by their agent under a power of attorney (POA) when that person lacked the required capacity, Maryland law provides several paths to challenge those transfers. Common legal theories include lack of capacity, undue influence, fraud/forgery, breach of fiduciary duty, and conversion. You can pursue civil remedies to reverse transfers, obtain an accounting, remove the agent, and recover money; you can also ask criminal authorities or Adult Protective Services to investigate elder abuse or theft.

Key legal bases to challenge transfers

• Lack of capacity: A POA is only valid if the principal had sufficient mental capacity when they signed the document or when the agent acted (for springing POAs or contested acts). If evidence shows the principal was not able to understand the nature and effect of the transaction, a court can void the POA or particular transfers.
• Undue influence: If someone pressured, coerced, or manipulated the principal into signing the POA or into authorizing transfers, courts can set aside the POA or unwind transfers caused by that influence.
• Breach of fiduciary duty: An agent must act loyally and in the principal’s best interests. Self-dealing, waste, or transfers that benefit the agent improperly can lead to removal, repayment, and damages.
• Fraud or forgery: If the signature, document, or authorization was forged or the agent lied to banks or doctors, criminal and civil claims can follow.

Where to bring claims and what relief you can seek

In Maryland, contested matters about incapacity, guardianship, and disputed powers of attorney typically go to the Circuit Court in the county where the principal lives. Possible relief includes:

• Declaration that the POA (or certain acts) is void or invalid.
• Accounting from the agent and return of improperly transferred funds (surcharge/repayment).
• Removal of the agent and appointment of a guardian or conservator (if the principal lacks capacity).
• Temporary emergency orders to stop further transfers or to freeze accounts while the court decides.
• Criminal referral for theft, exploitation, or forgery.

Statutes and official resources

Maryland’s statutes and court resources discuss powers of attorney, fiduciary duties, and guardianship procedures. For general statutory text and guidance, see the Maryland General Assembly and Maryland Courts resources:

• Maryland Code — Estates and Trusts (Power of Attorney provisions): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=est&section=17-101
• Maryland Courts — information on powers of attorney and related court procedures: https://www.mdcourts.gov/legalhelp
• Maryland Department of Human Services — Adult Protective Services information and reporting: https://dhs.maryland.gov/local-assistance-programs/adult-protective-services/

What evidence helps prove lack of capacity or wrongdoing

Courts weigh medical records, contemporaneous notes, and testimony. Useful evidence includes:

• Medical and psychiatric records near the time the POA was signed or transfers occurred.
• Statements from treating physicians, nurses, or caregivers about the principal’s cognitive state.
• Bank records showing unusual transfers, payees, or patterns inconsistent with the principal’s prior behavior.
• Copies of the POA itself (including notary or witness statements) and any drafts or altered pages.
• Emails, text messages, or recordings showing pressure, deception, or instructions from the agent.
• Witness testimony from family members, friends, or professionals who observed the principal’s condition or the agent’s conduct.

Immediate steps to take if you suspect improper transfers

1. Preserve evidence. Make copies of bank statements, the POA document, correspondence, and any records showing transfers.
2. Request an accounting. Send a written demand to the agent and any financial institutions that handled the transfers asking for a full accounting and copies of transaction records.
3. Contact the bank. Ask the bank to place a hold or flag suspicious transactions and to preserve records. Banks sometimes have fraud units that will investigate.
4. Report to Adult Protective Services and local law enforcement if you suspect elder abuse, exploitation, or theft.
5. Consider a court filing. A lawyer can file a petition in circuit court asking for emergency relief (freeze accounts, temporary guardian) and a full hearing on the validity of the POA and transfers.

Timing and statute of limitations

Time matters. Some claims have statutes of limitations and evidence disappears over time. If you suspect wrongdoing, act promptly to preserve proof and assess legal options. A Maryland attorney can advise particular deadlines that apply to your claim.

Practical considerations before filing suit

• Cost vs. recovery: Litigation can be expensive and emotional. Weigh likely recovery against legal fees and stress.
• Family dynamics: Litigation may fracture relationships. Mediation or negotiation sometimes resolves disputes faster and less acrimoniously.
• Criminal vs. civil paths: Civil suits recover assets; criminal charges may result in prosecution, restitution, and deterrence.

Because each case depends on its facts — the exact language of the POA, whether the POA was durable or springing, the timing of transfers relative to medical events, and the record of the agent’s actions — talk with a Maryland attorney who handles elder law, probate, or civil litigation to evaluate the strongest approach.

Helpful hints

• Immediately save or photograph any POA document and bank records related to the transfers.
• Obtain copies of medical records near the time the POA was signed and the transfers occurred; these often make or break capacity claims.
• Ask the bank for a transaction history and request that they preserve the records and any surveillance or signature verifications.
• Contact Adult Protective Services (DHS) for an investigation if you suspect exploitation: https://dhs.maryland.gov/local-assistance-programs/adult-protective-services/
• Consider a temporary emergency court filing to freeze assets if transfers are ongoing or irreversible.
• Get an attorney experienced with Maryland probate, guardianship, and elder abuse matters to assess remedies and timing.
• Keep emotion out of communications with the agent and third parties; make written requests and document all contacts.
• Preserve digital evidence: emails, texts, phone logs, and copies of voicemail can support claims of undue influence or fraud.
• Be realistic: some transfers to third parties (innocent payees) can complicate recovery; an attorney can evaluate who is liable.