POA abuse and taxes

[FredZack]

What is the name of your state? PA

We are in the process of finding an atty to help with possible fraud committed in estate of our grandmother, and it seems likely that the executor used the POA to clean out granny's accounts in the year before her death. I see that this story is similar to hundreds of others, and it also seems likely to me that this money is going to be difficult or impossible to recover through civil action..and not sure if criminal actions are possible (questions for our attorney, I know).

But, our curiosity is killing us: Would this money (which is in the hundreds of thousands) be of interest to the IRS as income for this person?

And would it have been possible to use the POA to change bank/brokerage accounts to joint accounts with the purpose of avoiding income and inheritance taxes?

thanks

 

[seniorjudge]

What is the name of your state? PA

We are in the process of finding an atty to help with possible fraud committed in estate of our grandmother, and it seems likely that the executor used the POA to clean out granny's accounts in the year before her death. I see that this story is similar to hundreds of others, and it also seems likely to me that this money is going to be difficult or impossible to recover through civil action..and not sure if criminal actions are possible (questions for our attorney, I know).

But, our curiosity is killing us: Would this money (which is in the hundreds of thousands) be of interest to the IRS as income for this person?

And would it have been possible to use the POA to change bank/brokerage accounts to joint accounts with the purpose of avoiding income and inheritance taxes?

thanks

Q: Would this money (which is in the hundreds of thousands) be of interest to the IRS as income for this person?

A: If the POA paid it to himself, then yes.


Q: And would it have been possible to use the POA to change bank/brokerage accounts to joint accounts with the purpose of avoiding income and inheritance taxes?

A: Anything is possible.


You have to remember that when grandma gave the POA to this person, she probably gave him the power to do everything he did. Proving fraud is going to be extremely difficult.

You say the fraud was committed in the "estate" of grandma but then you say that the POA did it.

The POA ends on death of the person who gave it. So your post is a tad confusing.

 

[FredZack]

Proving fraud is going to be extremely difficult.

You say the fraud was committed in the "estate" of grandma but then you say that the POA did it.

The POA ends on death of the person who gave it. So your post is a tad confusing.

I apologize for the confusion- this is new to me, just trying to get my arms around things.

The POA was also executor. He moved the money prior to her death, which allowed him to then file for summary administration. Agree that will be difficult to prove, hence the question re: the IRS (as a last ditch poke in his eye ).

The suspected fraud relates to papers filed during probate..there may be forged signatures on some. I realize this will probably have no impact on the missing money, but who knows?

Thanks again for your input- these are all questions we will put to the atty (when we find one we can agree on lol).