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My 99 year old grandpa is giving his money to a lady who works at his Assisted Living home because she has recently been diagnosed with Diabetes and can't afford the medication and pump she needs. My mom and I are trying to prove to him and his family that this is not right but no one believes us. Does anyone know if there is any law that is for this so we can prove to them that this is illegal?

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If you are sure that Grandpa has actually done this ( and please be sure, dementia patients sometimes tell some incredible stories) report the employee to the director of the AL. You don't need to convince anyone else.
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I don't know that it's illegal - however, it was the policy at my mom 's AL that there were to be no gifts to any staff, cash or items. Maybe this is in writing in your gpa's AL contract.
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A law against giving gifts? Sorry, no such *law*. But as Linda22 had mentioned above, there could be a policy against giving such gifts to the staff. But first be sure that your Grandpa actually did do this.... with advanced age decline even one's mind might not be very clear.
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Call the Director of the ALF immediately and report the employee taking money from a resident.
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It was a firing offense at my mom's ALF.
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It's definitely unethical. Report to the manager of the AL he is in. They should have a policy regarding accepting cash and/or gifts. If it's a small token and the person would be offended then I'd say ok, but not if its cash or anything substantial.
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Who's keeping track of your grandfather's money? Because any cash gifts he's made should be easy enough to identify.

Agreeing with everyone else, I know of no care organisation or long term facility that would allow its staff to accept presents of any value, let alone cash, from a resident. It is so obviously open to abuse that it's a clear no-no. But a law against giving your money away to whomever you please? No.
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There is no law against "giving" gifts. But there is certainly policy against staff accepting gifts, and the staff member knows this. It should be reported to the facility director IF you know it to be true.
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While not illegal (people can give their money to whomever they choose), it is very likely against the policies of the AL.
If your grandfather has the resources and would like to help out this caregiver, I suggest you involve the management of the AL and make his gift to her a one-time thing (rather than ongoing cash). He could, for example, pay her copay on the pump.
While your grandfather may have dementia, it clearly has not stolen his compassion for others.
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There is a law in the state of Ohio that prohibits accepting gifts of this nature. I began working in an assisted living facility 3rd shift a few months after becoming my mother's caregiver and during orientation and training this was stressed. Caregivers in that situation can have charges brought against them and the penalties are very serious, including jail time and hefty fines.
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