Whether or not the new Power of Attorney obtained by your step sister-in-law and cousin is valid depends on a couple of things. Primarily, would be the question of whether or not your mother-in-law was competent at the time the new document was purportedly executed by her. Namely, how advanced was her dementia at the time the document was done. This type of questions usually turns on the testimony of your mother-in-law's treating doctors and other healthcare providers. If she was found to be competent, you would question whether or not the new Power of Attorney was a product and result of undue influence or fraud. Both are difficult arguments to make and the burden to establish and prove same would be on you.
If your step sister-in-law and cousin engage in a pattern of self-dealing as Agents under the new Power of Attorney, then you may have some recourse after the fact, but, again, such cases are not easy and generally require litigation. If you would like to discuss this matter furtther, please feel free to contact me directly either through our firm's website at www.americanwillsandestates or by email at [email protected] Thank you.
Lloyd A. Welling, Esq.