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

Short answer: Yes — you may be able to challenge transfers made by an agent under a power of attorney (POA) if you can show your grandfather lacked capacity when the POA was signed or when the agent made the transfers, or if the agent exceeded authority, acted under undue influence, or breached fiduciary duties. In Vermont, these disputes are typically handled in probate or civil court and may lead to removal of the agent, reversal of transfers, and recovery of assets. Act quickly to preserve evidence and stop further transfers.

Disclaimer

This article is informational only and not legal advice. I am not a lawyer. For advice about your specific situation, consult a Vermont attorney who handles probate, guardianship, or elder financial abuse matters.

Detailed answer — how a challenge works under Vermont law

1. Two different ways to attack transfers

• Attack the power of attorney itself. Argue the POA is invalid because your grandfather lacked the required mental capacity when he signed it, or because the signature was procured by fraud or undue influence. If the POA is declared invalid, transfers the agent made under it may be void or voidable.
• Attack the agent’s actions. Argue that even if the POA was valid, the agent exceeded authority, committed a breach of fiduciary duty, converted funds, or made improper gifts. Even with a valid POA, the agent must follow the principal’s instructions and act in the principal’s best interests.

2. Legal standards you will need to meet

Although courts look to the specific facts, these concepts matter:

• Capacity at the time of signing: To execute a valid POA, a principal generally must understand the nature and effect of the document and the consequences of giving another person authority to act. If the principal could not understand or communicate those matters when the POA was signed, a court may find the POA invalid.
• Capacity at the time of the transfer: Some challenges focus on whether the principal had capacity when the agent actually made the transfer (if the POA required the principal’s involvement for that act).
• Undue influence or fraud: If someone coerced or tricked your grandfather into signing the POA or into authorizing transfers, a court can void the document or the transfers.
• Agent duty and scope: Agents owe fiduciary duties and must act within the scope of authority. Improper self-dealing, excessive gifts to the agent, or transfers unrelated to the principal’s needs can be reversed.

3. Where you bring the challenge

You will typically file a petition in Vermont probate court (or a civil case seeking recovery) asking the court to:

• Declare the POA invalid or revoked;
• Remove or restrict the agent;
• Order the agent to provide a full accounting;
• Order restitution or return of assets obtained improperly;
• Appoint a fiduciary (conservator/guardian) to manage the principal’s finances going forward, if needed.

4. Vermont statutes to review

Vermont’s provisions governing powers of attorney and an agent’s duties are found in the state statutes about powers of attorney. You can read the statutory language and related rules on the Vermont Legislature’s website (search results for “power of attorney”):

Vermont statutes — search results for “power of attorney”

Also check Vermont court and probate resources for forms and local procedures:

Vermont Judiciary (probate and court information)

5. Typical remedies

• Void or rescind transfers that were fraudulent, the product of undue influence, or outside the agent’s authority.
• Obtain an accounting of the agent’s transactions and possible surcharge (financial penalty) for losses.
• Remove the agent and appoint a guardian/conservator or temporary fiduciary to protect the principal’s assets.
• Bring criminal or civil claims for theft, exploitation, or conversion in appropriate cases (these may run alongside probate actions).

What evidence helps prove lack of capacity or misconduct?

Collecting and preserving evidence is critical. Helpful evidence includes:

• Medical records and physician or neuropsychological evaluations around the time the POA was signed and when transfers occurred;
• Copies of the POA and any related documents (deeds, bank authorization forms, checks, wire instructions);
• Bank statements, cancelled checks, wire confirmations, or transfer receipts showing where money moved;
• Communications (emails, text messages, letters) that show pressure, threats, or promises;
• Testimony from witnesses who saw the principal’s condition or who were present when the POA was signed;
• Evidence of the agent’s own unusual behavior, such as secret transfers to themselves or close associates, sudden changes in beneficiary designations, or failure to meet the principal’s needs.

Practical steps to take right away

1. Preserve documents. Get a copy of the POA, recent bank statements, and records of transfers.
2. Contact the financial institution. Ask whether they can freeze suspicious transfers or place a hold while you pursue legal remedies. Banks have policies for suspected elder financial abuse.
3. Get medical records. Request records from the doctors who treated your grandfather around the time of the POA signing and the transfers.
4. Notify adult protective services (APS) or the Vermont Department for Children and Families if you suspect exploitation. Their contact page: Vermont DCF.
5. Talk with a Vermont attorney experienced in probate, elder law, or fiduciary litigation as soon as possible.

Timing and urgent relief

Time matters. Courts can issue temporary emergency orders to stop an agent from moving money, require an immediate accounting, or appoint a temporary fiduciary. If you believe assets are being dissipated now, ask a lawyer about seeking temporary injunctive relief from the probate or civil court.

How a lawyer can help

An attorney can:

• Review the POA and financial records and advise whether a challenge has merit;
• File a petition in probate or a civil lawsuit to challenge the POA or recover assets;
• Draft emergency motions to freeze assets and stop transfers;
• Work with medical experts to document capacity issues;
• Negotiate a settlement or take the case to trial if necessary.

Helpful hints

• Act quickly: evidence disappears and funds can move fast.
• Preserve electronic records: download bank statements and texts as soon as possible.
• Get a certified copy of the POA from the agent or from the county probate office if one was recorded or submitted.
• Look for red flags: large gifts to the agent, transfers to unknown accounts, sudden changes in estate plans, or the agent isolating the principal from family and friends.
• Use medical evidence: contemporaneous physician notes are often persuasive on capacity questions.
• Consider alternative dispute resolution early — sometimes a demand for an accounting or a mediated resolution returns assets faster than litigation.
• Contact Adult Protective Services (Vermont DCF) when abuse or exploitation is suspected.

Where to find Vermont-specific resources

• Vermont Legislature — search statutes for “power of attorney”: https://legislature.vermont.gov/statutes/search?keyword=power%20of%20attorney
• Vermont Judiciary — probate court information and local court contacts: https://www.vermontjudiciary.org/
• Vermont Department for Children and Families (reports of adult abuse/neglect/exploitation): https://dcf.vermont.gov/

Final notes

Challenging transfers made under a power of attorney is often fact-intensive. The case will turn on the principal’s mental state at relevant times, the agent’s conduct, available documentary evidence, and prompt legal action. If you suspect abuse or invalid authorization, start preserving evidence and consult a Vermont attorney experienced in probate and fiduciary disputes right away.