Mother-in-law recently passed away. It wasn't until we were confronted by probate that we were informed that my wife's sister, who has POA over Mother, had a credit card takened out in mothers name using mothers info, without anyones knowledge. Now that we found out and confronted her, she says she doesn't remember, even when the credit card logs show she used it at dept stores and alot at walmart for her own needs. Now we stand to loose our inheritance because of her! What can be done? Someone please help us on this.
Your wife can go to the police and tell them what happened. Get it on record. If your SIL committed a crime in your MIL's name, it's a police matter. They get so many cases like this that it can be years before any investigation start, that is if there's any done at all. The credit card company will make a claim to your MIL's estate for payment. It will have to go into court a judge will determine whether or not your MIL's estate is responsible for the bill or your SIL is.
I would like to make one thing plain to you though. You should not say 'our' inheritance. It is not your inheritance too. It is your wife's inheritance because that was her mother, not yours. You would do well to not sound so eager about the money if you go with your wife to talk to the fraud division of the police department or to court with her.