Summary
If your father, diagnosed with dementia, borrowed money after you became his power of attorney, you may have grounds to reverse the transaction. In Alabama, a power of attorney can be revoked if the principal lacked mental capacity. Documentation from a doctor about your fathers mental state at the time of the loan is crucial. Banks have a duty to ensure the mental capacity of their clients. Consult with the bank and provide evidence of your fathers condition to potentially reverse the loan.Full Conversation
I am my father’s power of attorney. He recently borrowed money from a bank.. is there anything I can do to reverse this or to prevent it from happening in the future?
Did your father borrow the money before or after you became his power of attorney?
after; however the bank was not aware.
Did your father have the mental capacity to understand the implications of borrowing money when he did so?
he has dementia
What state are you and your father located in? This will help me provide the most accurate information.
alabama
Did your father's doctor officially diagnose him with dementia before he borrowed the money?
In Alabama, a power of attorney can be revoked if the principal lacked mental capacity.
He is in the process of being treated. He was diagnosed with being “partially aware”
Did the doctor provide a written statement about your father's mental capacity at the time of the loan? In Alabama, such documentation can be crucial in legal disputes.
no, a statement had not been written at the time of the loan. But, the power of attorney is active in regards to financial decisions.
Did the bank have any reason to suspect your father's mental capacity when he applied for the loan?
In Alabama, banks have a duty to ensure the mental capacity of their clients.
no I don’t believe so.. but, he doesn’t even know what year we are in. So I find it hard to beeline that it wouldn’t become noticeable upon conservation/paperwork
Did your father sign the loan documents himself or did someone else sign on his behalf?
he signed them
What was the date of the loan agreement? This is important to determine if the power of attorney was active at that time.
he just did this about a week ago. Power of attorney has been active for 5 months
What actions have you taken so far to address this issue with the bank?
nothing, I scheduled to meet with them on Tuesday
What is the name and location of the bank where your father borrowed the money? This will help me provide you with the most accurate information.
Alabama
What is the exact amount your father borrowed from the bank?
*,*
What is the name of the bank where your father borrowed the money?
imax
What is the purpose of the loan your father took out?
He used it to buy another person a car
Did your father have any agreement with the person he bought the car for?
no
What is the name of the person your father bought the car for?
Just that he would buy her one. I’m not aware of her full name. She is a random individual.. which is exactly why I have power of attorney
What is the model and year of the car your father bought for this individual?
Honda accord. *
Did your father transfer the car title to the individual he bought the car for?
Yes
yes he did
yes
hws
What is the current status of your father's dementia treatment?
yws
They have him on medications and he is set for an additional mri to see how much it has progressed
What is the name of your father's doctor and the hospital where he is being treated?
Skip
What is the name of the bank branch where your father borrowed the money?
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