Detailed Answer

Yes — in Texas you can challenge transfers that were made under a power of attorney (POA) if you have a good-faith basis to believe the principal (here, your grandfather) lacked capacity when the POA was executed or when the transfers occurred. The typical legal routes are civil actions that ask a court to declare the POA void or voidable, to set aside particular transfers, to require an accounting, or to appoint a guardian or receiver to protect assets.

Legal grounds for challenge

• Lack of capacity: To be valid, a POA must have been executed by a person who understood the nature and effect of the document and the decisions they were making. If your grandfather did not understand (for example, due to dementia, delirium, or severe mental impairment), the POA or specific transfers may be voidable.
• Undue influence or coercion: If someone pressured, isolated, or misled your grandfather into signing the POA or into making transfers, a court may set aside the actions.
• Fraud or forgery: If signatures were forged or the agent misrepresented facts to induce transfers, criminal or civil remedies may apply.
• Breach of fiduciary duty: An agent under a POA owes duties to the principal and must act in the principal’s best interest. Self‑dealing or private benefit can trigger liability.

Key Texas law to review

Texas sets statutory rules about powers of attorney, agent duties, and remedies. See the Texas Estates Code chapters governing powers of attorney and agent duties for text and statutory procedures:

• Texas Estates Code, Chapter 751 (Powers of Attorney)
• Texas Estates Code, Chapter 752 (Agent duties and rules)

Common court actions and remedies

Depending on the facts you can ask a court for:

• A declaratory judgment that the POA is invalid or was revoked.
• An order setting aside specific transfers and requiring return of assets to the estate or to a protected account.
• An accounting from the agent showing all transactions and receipts.
• Temporary injunctive relief or a restraining order to preserve remaining assets while the dispute is resolved.
• The appointment of a temporary guardian, conservator, or receiver to protect the principal’s person and/or estate if the principal lacks capacity now. The Texas Judicial Branch has general guardianship information at txcourts.gov – Guardianship.
• Possible civil damages and, in some cases, referral to prosecutors for financial exploitation.

Evidence that helps prove lack of capacity or undue influence

Courts look at contemporary evidence showing the principal’s state of mind and the context of the POA and transfers. Useful evidence includes:

• Medical records, cognitive exams, neurology or psychiatric evaluations near the time of signature or transfers.
• Testimony from treating physicians, nurses, caregivers, or family who observed confusion or impairment.
• Copies of the POA and related documents, and who witnessed or notarized them.
• Bank records, transaction histories, cancelled checks, wire transfers, or large withdrawals that seem inconsistent with the principal’s prior habits.
• Communications (emails, texts, letters) showing pressure or misrepresentation by the agent or third parties.
• Evidence of sudden changes in estate planning or beneficiaries that coincide with the POA.

Immediate practical steps to protect assets

1. Preserve documents: Ask the bank and other institutions for copies of account histories, copies of the POA, and any records of transactions.
2. Secure medical records: Request the principal’s medical chart and any cognitive testing around the relevant time.
3. Document observations: Write down dates, who said what, and witnesses who can corroborate changed behavior or coercion.
4. Consider urgent court relief: If transfers continue or assets are at immediate risk, an attorney can file for temporary relief (TRO or temporary restraining order) and seek appointment of a temporary guardian or receiver.
5. Do not attempt to act as the principal unless you have clear legal authority — taking unilateral steps (like removing the agent without a court order) can complicate litigation.

Timing and limitations

Statutes of limitation and procedural rules can limit how long you have to bring different claims. Some remedies require prompt action to preserve assets and evidence. If you suspect wrongdoing, start the investigation quickly and consult an attorney experienced in probate, elder law, or civil litigation in Texas.

What to expect in court

Contested POA cases can require fact discovery, witness depositions, expert testimony (medical and forensic accountants), and sometimes a trial. Courts balance the principal’s care needs, the protection of assets, and the rights of third parties who may have relied on the POA in good faith.

When criminal authorities might get involved

If there is evidence of theft, forgery, or financial exploitation, you can report the conduct to law enforcement or Adult Protective Services. Criminal charges are separate from civil remedies, and prosecutors may pursue charges depending on the evidence.

How an attorney can help

An attorney can:

• Evaluate whether you have enough evidence to file a lawsuit.
• Obtain emergency orders to freeze or protect assets.
• Gather medical and financial records and work with experts.
• File the appropriate petitions (declaratory judgment, accounting, guardianship petitions) and represent you at hearings.

Helpful Hints

• Act quickly: Evidence and bank records can disappear or be changed. Early preservation makes challenges stronger.
• Collect medical evidence first: A doctor’s note or cognitive test close to the signing is very persuasive on capacity issues.
• Look for patterns: Multiple transfers or sudden changes in the principal’s estate plan support a closer look for undue influence.
• Keep a written timeline: Document dates of POA execution, transfers, and any observable decline or allegations of pressure.
• Don’t delay asking for professional help: Complex financial forensics and legal procedure are often required to reverse improper transfers.
• Remember third-party protections: Banks and other institutions that accepted a facially valid POA in good faith may have defenses. That is why courts sometimes order an accounting rather than automatic reversal.
• Preserve witnesses: Caregivers, neighbors, or staff who observed the principal before and after the POA can be crucial witnesses.
• Expect a contested process: Be prepared for negotiations, mediation, or litigation; settlement is common when parties want to avoid long trials.