Can my wife (Ontario) be convicted of breaking some Power Of…

I apologize for the confusion .... let me explain the back story for you.

Starting 20 Years ago (approx 1993) my mother-in-law created a power of attorney document which included her son and daughter as the joint-attorneys. Her daughter (my wife) never knew about this document ever being created and only just found out about it's potential existence (the brother apparently has the original but we still have not seen this document).

More recently, about 1.5 years ago, my mother-in law physically went into the bank and added my wife to her bank account as a joint account owner. This was done in order to primarily make banking transactions easier for my wife who volunteered to pay my mother-in-law's bills, grocery shopping, etc. (remember, at this point, my wife still does not know about the existence of the POA document created in around 1993). Occasionally, my wife would find herself in a tight financial situation and would ask her mother for financial assistance (while she was a joint bank account owner, and while she was still unaware of the potential POA document that was created). In fact, even before the joint account was created by my mother-in-law, my wife would receive financial assistance (basically explaining that this is not an abnormal circumstance for her to receive this kind of help from her own mother).

Now, about 3 weeks ago, my mother-in-law had an accident while still living in her home and was brought to the hospital and eventually a retirement home without mine or my wife's knowledge. We had to investigate and find out where she was located simply because the brother in the situation was withholding information and was unwilling to communicate (he is the one who brought his mother to the hospital). Early on when she was first in the retirement home, he had her sign an apparently new POA document which she did not understand (and has stated that she did not understand to us) which was for Personal Care. After finally receiving a copy 2-3 weeks after the initial inciident, we read a phrase in the document which says specifically: “Unless otherwise stated in this document, this continuing power of attorney will come into effect on the date it is signed and witnessed”. As a result of all of these actions by my wife's brother, we became very suspicious of his true intentions.

Now, going back to the joint account set up by my mother-in-law and my wife. To safeguard some of my mother-in-law's funds (and really to slow down the rushed dealings with my mother-in-laws affairs), my wife transferred a substantial portion of the funds available in her joint bank account into a seperate, solely owned bank account. This transfer was done without first consulting with my mother-in-law and without the knowledge that my wife was apparently already a POA (we still have not seen the POA document).

Now, as a result of all of this activity, and due to the historic rivalry between my wife and her brother, my wife is now being accused of violating POA law. Her brother has stated that my wife has been in violation of POA law the moment (and I quote), “that SHE added HERSELF” to my mother-in-law's account (however this is not true – my mother-in-law went into the bank WITH my wife where she added my wife to HER account).

As expected, my wife's brother found out about our activity and is now threatening to have my wife charged and pursued by the authorities (Police, Elder Abuse Committee, Attorney General) unless we comply to his demands TODAY.

Given this backstory, the information that I need to know is the following.

a) If my mother-in-law signed a document stating that she has NEVER authorized my wife to act as an attorney WITH my wife's knowledge, knowing, and/or willing consent and witnessed by two of my adult children, is this document enough to protect my wife from some form of prosecution.

b) When my wife became a joint account owner with my mother-in-law, is she legally obligated to inform and/or report every transaction to my mother-in-law. It is my understanding that once you become a joint account owner, you essentially own the funds equally as much as the primary account owner – is this not true?

1. 
   

   My brother-in-law is demanding that my wife return the transferred money to a new joint account which has newly been created in my mother-in-law's and his name. The reason we do not want to give in to his demnds are because we truly feel his intentions with my mother-in-law are not in her best interest and once he has access to those funds, my wife and I will have no control and no say in my mother-in-law's well-being. The only reason we would give in to his demands is because we do not want to be prosecuted if in fact we did violate any laws (which to the best of our knowledge and actions, we have not).

   
   

We simply at this point in time are trying our best to ensure that my mother-in-law receives the best possible treatment and care, but simultaenously are evaluating the risks and are unsure whether or not we have a leg to stand on to fight him, or to simply give in.

Note: I can provide copies of all stated documents should you need to review them (except for the 1993 POA which we do not know whether or not it exists).

“Your wife was not permitted, with or without a POA, to take any funds of her mother's without her mother's permission as the mother is competent. “

Could you please clarify this? I was under the impression that as the Joint Owner of an account one has equal rights to the funds, regardless of original ownership. My mother-in-law is competent but my brother-in-law has convinced her that we were stealing. Does what you are saying apply only to the funds that were transferred out or to all funds since the day my wife was made a joint owner.

Hmmm ... mixed up in all this are the POA's

My brother in law had my mother in law sign a POA titled POA for Personal Care (without legal advice) naming him attorney which contains 4 points the third of which is

3) EFFECTIVENESS; unless otherwise stated this continuing power of attorney is effective when signed (Aug 25)

Is this solely a POA for Personal Care