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What do they need to prove to do so? If your sister passes away and she was the power of attorney and you were second in line. Can a family member take that power of attorney away from you if you don't have a death certificate?

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Only the person who issued the Power of Attorney, such as a parent, can make any changes to said document. If you are 2nd in line behind your sister, since she had passed, you automatically become primary POA.

By the way, how can a family member not know that your sister had passed away?
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The family cannot take it away, but the person who assigned their POA can certainly make changes. They just have the attorney issue a new POA and revoke any old ones. Happens all the time.
Now if person who issued the POA dies, remember, the POA ends when they die. Then everything is done by the Executor of the Will.
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The family member who now wants POA would have to go to court, and probably petition for guardianship, a lengthy and expensive process.

Without court intervention, the secondary person on the POA takes over the duties.
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