I actually think they're setting up for a custody battle between Michael and Joe, Carlos' brother. Since Joe's arrival, he's taken an interest in getting to know Teddy, much to Michael's dismay. Now I'm thinking he was brought in to battle for custody of Teddy when Sabrina died. He's a doctor, a seemingly respectable guy, and nothing like Carlos. He's Teddy's closest relative, besides her extended family in Puerto Rico. Michael is not related to Teddy, and Sabrina most likely did not leave a will behind with instructions on who should raise Teddy. I think Michael is in for a legal battle.