Can I challenge transfers made under a power of attorney if I suspect my grandfather lacked capacity?

Short answer: Yes — under Alaska law you can challenge transfers made by an agent under a power of attorney (POA) if you reasonably believe the principal (your grandfather) lacked the mental capacity to execute the POA or to understand the transfers, or if the agent exceeded authority, committed fraud, or exerted undue influence. You will need timely action, documentary and medical evidence, and usually a court case to undo transfers or obtain other remedies.

Detailed answer — how a challenge works under Alaska law

1. Who can bring a challenge?

Interested persons can challenge transactions. “Interested person” typically includes family members, heirs, beneficiaries, trustees, guardians or conservators, and sometimes financial institutions or creditors who are harmed by the transfer.

2. Legal grounds to challenge transfers

• Lack of capacity when the POA was signed: If your grandfather lacked the mental ability to understand the nature and effect of signing the POA, a court can find the POA invalid. Capacity is judged at the time of signing.
• Lack of capacity when the transfer occurred: Even if the POA was valid, the principal must usually have had sufficient capacity for the particular transaction when the agent made the transfer.
• Undue influence or fraud: If the agent or another person coerced, deceived, or improperly pressured the principal into signing the POA or into making the transfer, a court may set aside the instrument or the transaction.
• Forgery or improper execution: If the signature is forged or execution formalities required under statute were not met, the POA or the transfer may be void.
• Agent exceeded authority or breached fiduciary duty: An agent must act within the authority granted by the POA and in the principal’s best interest. Improper or self-dealing transfers can be reversed, and the agent may be liable for money damages, return of assets, or surcharge.

3. Evidence that helps win a challenge

Courts look for contemporaneous, convincing evidence. Useful evidence includes:

• Medical records and doctors’ statements showing cognitive status at the time of the POA signing and at the time of the transfer.
• Copies of the POA document, notarization/acknowledgment pages, and any certification of authentication.
• Bank records, transfer records, titles, and receipts showing the timing and size of transfers.
• Communications (emails, texts, letters) that show who initiated the transfer and any pressure applied.
• Testimony from caregivers, family members, or professionals who observed the principal’s condition.
• Forensic handwriting analysis if forgery is suspected.

4. Typical remedies a court can order

• Set aside or rescind transfers made by the agent.
• Order the agent to return misappropriated funds or property (restitution or surcharge).
• Freeze assets or enter injunctive relief while the dispute is litigated.
• Appoint a guardian or conservator (called “protective proceedings” in Alaska) to manage the principal’s affairs going forward.
• Refer or pursue criminal charges if theft, exploitation, or fraud occurred.

5. Where Alaska law is relevant

Power of attorney, guardianship, and probate matters in Alaska are governed by provisions in Alaska statutes related to probate and protective proceedings. You can review the Alaska statutes for probate and powers of attorney at the Alaska Legislature website: Alaska Statutes, Title 13 (Probate). If you suspect elder abuse or financial exploitation, Alaska’s Adult Protective Services may be able to investigate: Alaska Adult Protective Services.

Practical steps to take right now

1. Act quickly. Evidence disappears and banks may be unable to reverse transfers after time passes.
2. Preserve records. Immediately copy the POA document, bank statements, titles, closing documents, emails, and any communications about the transfers. Do not alter original documents.
3. Get medical records. Obtain the principal’s medical records around the time the POA was executed and when the transfers happened. A physician’s retrospective statement can be powerful evidence of incapacity.
4. Ask for an accounting. Request that the agent provide a written accounting of transactions made under the POA.
5. Contact the institutions. Tell the bank or title company you suspect improper transfers and ask whether they can freeze accounts or reverse suspicious transactions. Provide copies of the POA and any revocation if applicable.
6. Consider emergency court relief. In many cases you can ask the court for a temporary restraining order or an appointment of a conservator/guardian to stop further transfers immediately.
7. Report exploitation. If you suspect criminal exploitation, report to Adult Protective Services and local law enforcement.
8. Consult an attorney experienced in Alaska probate and elder/financial exploitation matters. An attorney can advise about filing a civil action to set aside transfers, petitions for protective proceedings, and interactions with criminal authorities.

Common obstacles and how to address them

• Bank compliance: Banks often rely on facially valid POAs. If the document looks valid, banks may be reluctant to act without a court order. That is why a court petition or quick negotiation is often necessary.
• Proof of mental state: Proving incapacity can be difficult without medical records or reliable witnesses. Seek prompt collection of medical evidence.
• Delay and cost: Litigation can be time-consuming and expensive. Emergency protective petitions can provide short-term protection while you decide on longer litigation.

Hypothetical example

Suppose your grandfather signed a POA shortly after a hospital stay. Two months later his agent transferred a large sum from his bank account to a new account in the agent’s name. Family members recall that during the hospital stay your grandfather was confused and could not follow simple conversations. Steps you would take: collect the POA and transfer records, request the hospital medical records for the relevant dates, ask the bank to freeze the account, notify Adult Protective Services, and contact an attorney to file for temporary conservatorship and to ask the court to freeze or reverse the transfers pending litigation.

Helpful links

• Alaska Statutes — Title 13 (Probate and related provisions)
• Alaska Adult Protective Services

Helpful Hints

• Start collecting documents immediately — banks and hospitals keep records but they are easier to use if you copy them early.
• Get a physician’s note describing the principal’s mental state at the relevant times; contemporaneous records are strongest.
• Preserve electronic evidence (scans of documents, photos of signed pages, emails, and texts). Save original paper documents when possible.
• Do not confront the agent in a way that could cause them to dissipate assets before you take legal steps; consult counsel first.
• Ask a lawyer about emergency petitions (temporary restraining orders, temporary conservatorship) to freeze assets while you build your case.
• If the bank claims the POA is valid, a court order is often necessary to force a reversal — be prepared to move quickly.
• Consider both civil remedies (set aside transfers, restitution) and reporting criminal exploitation to law enforcement or Adult Protective Services.

Disclaimer: This article is for general educational purposes only and is not legal advice. It does not create an attorney-client relationship. Laws change and facts matter; consult a licensed Alaska attorney promptly to discuss your specific situation.