Can we be sued by a POA for pulling our insurance off of a car after we left it in their possession?

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Can we be sued by a POA for pulling our insurance off of a car after we left it in their possession?

The car that my husband was driving and paying loan payments on, plus insurance for, is financed solely in his father’s name. His father has dementia and is in a nursing home unable to make decisions himself. My sister-in-law is his power of attorney and has insisted that my husband return the car so she can sell it, yet continue to pay her for the loan and to insure the car. We decided that the best thing to do was return the car to her and wash our hands of it.

Asked on January 26, 2014 under Estate Planning, Minnesota

Answers:

Anne Brady / Law Office of Anne Brady

Answered 8 years ago | Contributor

I can not imagine what basis the POA could have to sue you for canceling insurance on a car that was not in your name and not in your possession.  Unless you signed a contract promising to insure the car, you do not appear to have anything to be concerned about.


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