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My dad has Alzheimer's, and my step-mom has his power of attorney. Most of their assets are at Fidelity, with ownership in their trust.
She recently got a letter from Fidelity saying that she has to add an additional trustee to the trust accounts because she is no longer capable of managing the funds. For my dad's rollover IRA, which is the biggest IRA, they want her to be removed completely and someone else be given power of attorney.
Apparently this all arises from two phone calls she made to Fidelity. On 12/29, she took the RMD from the IRA. They are saying that she directed them to send the money to her checking account. Her intention was to have it sent to the trust account, then reinvested.
On 1/15, she noticed the money in her checking account and called to ask them why it was there. She asked them to suck it back into the trust and invest it in Contra.
Because she didn't remember telling them to pay it out two weeks earlier, they are saying she's not competent. I guess she must have forgotten which account she was talking about, because for the investments in Dad's separate property account, they are holding dividends in cash to pay for his long-term care.
By the way, the consequence of being deemd incompetent by Fidelity is that she can't open any new positions, which she doesn't plan to do anyway. She can sell existing positions, and she can withdraw the money. But they say that if she doesn't add a new trustee/POA by 6/24, they may take other action including closing the accounts.
Here are the questions:
Has anyone else had this experience?
Can they do this? She hasn't been found to be incompetent by any doc or court.
Outside of getting lawyers involved, is there any way to resolve this without doing what Fidelity wants? Her lawyer says Fidelity can't do this, but it seems to me that getting lawyers involved would not be worthwhile.
By the way, she is 82 and she is under a lot of pressure because of Dad's situation, but she is pretty up on their financial workings, and I have absolutely no worry that she will be swindled, which I know is common for older folks.
I've pointed out to her that the consequences of adding another signer to the accounts is small, since she can trust us to do what's needed, but she is just really angry at Fidelity.
Thanks for your insights.
Dave
She recently got a letter from Fidelity saying that she has to add an additional trustee to the trust accounts because she is no longer capable of managing the funds. For my dad's rollover IRA, which is the biggest IRA, they want her to be removed completely and someone else be given power of attorney.
Apparently this all arises from two phone calls she made to Fidelity. On 12/29, she took the RMD from the IRA. They are saying that she directed them to send the money to her checking account. Her intention was to have it sent to the trust account, then reinvested.
On 1/15, she noticed the money in her checking account and called to ask them why it was there. She asked them to suck it back into the trust and invest it in Contra.
Because she didn't remember telling them to pay it out two weeks earlier, they are saying she's not competent. I guess she must have forgotten which account she was talking about, because for the investments in Dad's separate property account, they are holding dividends in cash to pay for his long-term care.
By the way, the consequence of being deemd incompetent by Fidelity is that she can't open any new positions, which she doesn't plan to do anyway. She can sell existing positions, and she can withdraw the money. But they say that if she doesn't add a new trustee/POA by 6/24, they may take other action including closing the accounts.
Here are the questions:
Has anyone else had this experience?
Can they do this? She hasn't been found to be incompetent by any doc or court.
Outside of getting lawyers involved, is there any way to resolve this without doing what Fidelity wants? Her lawyer says Fidelity can't do this, but it seems to me that getting lawyers involved would not be worthwhile.
By the way, she is 82 and she is under a lot of pressure because of Dad's situation, but she is pretty up on their financial workings, and I have absolutely no worry that she will be swindled, which I know is common for older folks.
I've pointed out to her that the consequences of adding another signer to the accounts is small, since she can trust us to do what's needed, but she is just really angry at Fidelity.
Thanks for your insights.
Dave
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