Probate & Trust Law Section Conference Manual ... - Minnesota CLE

V. POWER OF ATTORNEY
A. Improper Use
case also involved a deceit by false promise claim. Now that the court
officially recognized the IIEI as a valid claim, the case was remanded for
grant to amend the IIEI cause of action.
1. Neuman v. Trice, 978 N.E.2d 228 (Oh. Ct. App. 2012). Personal use of
principal’s assets pursuant to power of attorney was a procurement
by undue influence. Decedent’s revocable trust provided that assets were
to be distributed to various family members, excluding her son. Among
the assets distributable to the trust were various annuities. Decedent
became ill and while in rehabilitation, executed a power of attorney
appointing son’s wife as agent. Agent liquidated accounts held in the trust
and transferred assets to a “POA account.” Agent also liquidated the
annuities and deposited them into her and her husband’s joint account,
alleging that the transfers were gifts at the decedent’s request. Decedent
was eventually declared incompetent and the power of attorney was
revoked by a court. An action was filed against the agent and a jury found
that agent was guilty of concealment and embezzlement. The Court held
that a holder of a power of attorney has a fiduciary relationship with the
principal. Relying on the fact that no gift tax returns were filed, the Court
ruled that the use of the assets for personal use was invalid and the money
was procured through undue influence.
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