Fiduciary Duty
We built a home with an accessory apartment for my disabled mother with her consent and the costs of the apartment were paid for with her finances. We had more than enough money to pay for our portion of the home. During the build, she appointed me her power of attorney and willed her possessions to me. I have been joint holder of her checking and savings accounts for 18 years. She lived here for 5 months when my sister convinced her to move out and sue me for breach of fiduciary duty for using her funds to build the apartment. Her attorney is fighting since I have benefited from this apartment, which I cannot legally rent, I've breached my fiduciary duty by self-dealing. My mother is now weeks away from being eligible for medicaid. Can I be held liable for all of this?
Re: Fiduciary Duty
I think the most important question is whether your mother was competent when she agreed to paying for the apartment, when she gave you power of attorney and executed her will.
If she was competent, was she misled in any way?
If she wasn't competent, then a court could find undue influence on your part.
How much are we talking about here? You need to weigh the amount of money they are looking for you to return and the cost of hiring an attorney to defend you.
