If my grandmother put a certificate of deposit in my name when I was a child and I wasn't suppose to receive

Question

it until I was(25) but I'm 27 now and for the past 3 years my grandmother has been suffering from Alzeimers. My uncle has power of attorney he has recently cashed in the cds and placed in his own account what can be done about this. in Yahoo! Answers

Answer 1

It really depends on a lot of things, such as how the certificate of deposit was registered, what state law applies, whether the certificates were actually registered as grandmother told you they were, and where the proceeds of the certificates of deposit were placed when they matured or were cashed in.

We do not know if the certificates of deposit were registered in the name of grandmother and granddaughter (and that registration could give a joint owner the right to cash them, depending on what is on the signature card), grandmother in trust for granddaughter, or grandmother payable on death to granddaughter.

The state law will come into play as regards to the accountability of an agent (or attorney-in-fact, if you prefer). Under Pennsylvania law, an agent is not permitted to commingle the funds of his principal with his own. Segregated accounts must be maintained. My state's law even would permit an attorney-in-fact to make gifts, either limited or unlimited, depending on the wording of the actual document, to himself.

In Pennsylvania, an attorney-in-fact can be compelled to file an accounting of his administration with the court. 20 Consolidated Pennsylvania Statutes, § 5610.

A loving family member should have no problem if the money from your grandmother's certificates of deposit were used to pay for her nursing home care. However, if your uncle used this money for his own trip to Bermuda, or a visit to the racetrack, that is wrong.

You may want to consult with an attorney. It may be sufficient to shake things up if the attorney sends your uncle a "letter of representation." At least that could get you some answers.