Elderly Woman’s Life Savings Nearly Wiped Out by Controversial Guardianship
Paulette Kohler, a 95-year-old retired hairdresser, recently celebrated her birthday in her rent-controlled Upper West Side apartment. However, despite living in her home for 70 years, she now faces financial uncertainty after a court-appointed guardianship drained nearly all of her savings.
In March 2022, Manhattan Judge Carol Sharpe placed Kohler under guardianship against her will, despite her documented wishes. At the time, she had $870,000 in her bank account. When the guardianship was overturned 16 months later, she was left with just over $27,000. The case has sparked outrage and is raising serious concerns about how guardianships operate and whether they are being misused.
The Guardianship Battle: How It Started
The guardianship was initiated after Kohler’s landlord alleged that her best friend, Inga Eggerud, was under FBI investigation for financial elder abuse. Eggerud, who has been Kohler’s longtime friend and caregiver, was designated as Kohler’s power of attorney and beneficiary a year before the guardianship was imposed.
Despite the landlord’s claims, no documented evidence of wrongdoing was ever presented against Eggerud. She has worked for years as a housekeeper for a prominent corporate executive, Barbara Goodstein, who has since stepped in to help uncover financial discrepancies in Kohler’s case.
Eggerud expressed her frustration over how she was treated during the legal process.
“They were attacking me like I was the worst thing on the planet. All I ever wanted to do was make sure Paulette could live out her final years in her home. I promised her that I would protect her,” Eggerud said.
Guardianship Overturned, but Money Gone
In November 2023, New York’s Appellate Division ruled that the guardianship had been “improper” and reinstated Eggerud as Kohler’s power of attorney. However, by that time, Kohler’s bank account had been nearly depleted.
The accounting records reveal that over $500,000 was spent on home health aides hired by the court-appointed guardian. Eggerud has since arranged far better care for Kohler at a fraction of that cost. Additionally, Kohler is still owed more than $65,000 in court-ordered fees.
Legal Battle: Seeking Justice
Eggerud is now suing those involved in the guardianship for defamation and intentional infliction of emotional distress. The defendants have denied any wrongdoing and sought to dismiss the charges. However, a trial court judge recently ruled that major claims could proceed against the law firm that originally represented Kohler’s landlord in the guardianship petition.
Barbara Goodstein, an experienced financial professional, has been closely examining the case and believes it exposes a major issue in the guardianship system.
“There is no visibility into this entire system,” Goodstein stated. “There are massive amounts of money moving around, and nobody can see where it’s going. This case is going to end up breaking ground in this space because so many people have made an industry out of this.”
Concerns Over Guardianship Abuse
Kohler’s case is just one example of a growing concern regarding guardianship abuse in the United States. Critics argue that some guardianships strip elderly individuals of their rights and drain their assets under the guise of protection. The lack of oversight in the system makes it difficult to track how funds are being used, leaving vulnerable seniors at risk of financial exploitation.
The heartbreaking ordeal of Paulette Kohler highlights the urgent need for reform in the guardianship system. What was meant to be a protective measure ended up nearly wiping out her life savings, despite no evidence of wrongdoing by her trusted friend.
Now, as legal battles continue, advocates hope this case will shed light on the lack of transparency in guardianship proceedings and help prevent similar injustices in the future. Kohler’s story serves as a cautionary tale for families navigating the complex and often dangerous world of court-appointed guardianships.
