Question:

I have an elderly father with late-stage Alzheimer’s disease. My sister has power of attorney for him. More than two years ago, I asked for information on his assets and investments because I wanted to be sure someone is looking out for the best investment options available, and my sister has no real financial expertise (nor do I). I told her that I wanted to let the person who gives us investment advice to weigh in on whether or not he thought my dad was positioned correctly with his investments and, if not, what we might consider changing. My sister said she would send me the information but 2+ years later here I sit. I have reminded her several times of her promise to get me the info, but she always pleads “I am too busy right now.” I wonder if I have any legal standing to get this information. Also wondering if you have any suggestions as to how to approach my sister. Currently (or the last I was told) my brother-in-law (who also has no real financial background) was “watching” my dad’s investments.

Response:

I agree that it’s important for those managing another person’s funds to get professional investment advice. Not only will this help prevent bad investment decisions, but it also protects the fiduciary, whether an agent under a durable power of attorney or a trustee, from claims that they made mistakes. In addition, we always counsel transparency when it comes sharing information about assets the agent is managing. This prevents malfeasance on the part of the agent and, more often, avoids a suspicion of malfeasance. It may well be that your father’s investments are fine as they are, but you have no idea unless you can get a statement and share it with your financial advisor—which is a seemingly simple request.

But what can you do when your sister doesn’t comply with your request for transparency? Unfortunately, you don’t have any direct legal rights. You could petition the local probate court to be appointed your father’s conservator and to remove your sister as his agent, but this will be an uphill battle. The court is likely to defer to your father’s choice of agent unless you can show actual malfeasance on your sister’s part. The process, if you were to pursue this route, would likely be costly and time-consuming, as well as making your relationship with your sister more difficult. On the other hand, you would likely gain access to account information through the process.

You could also wait until your father’s death and seek information at that time. As a beneficiary of his estate, your legal right to information would be more clear. But it still wouldn’t be direct. Your father’s executor or personal representative would have the right to information, not you.

You could explain to your sister that all you’re asking is for copies of recent bank and investment account statements. It’s hard to argue that she’s “too busy” to make copies or even to simply send you the originals. She could easily take pictures with her smartphone and email or text them to you. You might also explain that she has a fiduciary duty to your father to manage his finances with the utmost care. If she doesn’t have the experience herself, she owes it to your father to get professional assistance.

This article about trustees and agents under powers of attorney provides a bit more helpful information about their duties to disclose information.

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Does a Trustee or Agent under a Power of Attorney have a Duty to Report to Heirs?