A lightbulb went on all of the sudden and I'd appreciate some feedback. I need to apply for Medicaid for my mom but we may have an issue with her giving me roughly $35k a little over 4 years ago. I've been worried about, and others have mentioned this also, that I could be on the hook for the money my mom "gifted" me because I'm her POA. At the time she gave it to me, I was not acting as her POA. It was drawn up by a lawyer before then, but she didn't have more than a little memory loss at that time. She opened the bank account with me (that the money went into) and signed all the paperwork herself. I did NOT sign for her. She knew exactly what she was doing. The POA contract states that she has to be declared incapacitated by a court or in writing by a physician. That has never happened, despite her being unable to take care of herself now. Doctors, hospitals, the bank, etc. have all just accepted the paperwork from the lawyer. Anyone who has asked for proof of POA has never asked for any declaration of incapacity. So this means that when I transferred that money out of my and my mom's joint account and into my account with my husband, I wasn't acting as POA and therefore, it can't be considered self dealing. Does anyone see any issue with this line of thinking? I realize we may still have a gifting issue in terms of a penalty period for her, but this proves I didn't abuse my POA. Another thing that occurred to me is that her name was removed from my house (we owned it together and she quit claimed it to me) in 2005, but she has continued to live her since then, so technically, she has been "renting" from me all of this time. Giving me that money could be considered back payment of owed rent, correct? I can prove she lived with me with no ownership rights to the house herself, since 2005. That's a long time that we could have been paying for all kinds of things for her, and that "gift" could be repayment of nearly 20 years of expenses of her living here. I'd love to hear thoughts on these points please.
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It is good that you are seeking help. You should bring those documents from when you made the transfer. If you cannot do it online and you are on the account, you can also get the printouts from the bank manager
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I think it's a pity this wasn't thought about in advance. You'd better get some professional advice. I agree you probably won't be prosecuted for financial abuse, but what did you do with the $35K, what are all those expenses, what consideration did you pay your mother for her share of the property... oh good grief.
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Your mother gave you $35K free and gratis, she handed over her house with no consideration paid for her interest in the property, and now you think she owes you rent? All this so you can prove it's actually the tax payer who should be paying for her care?
I expect there are more learned people here who will be able to tell you how to swing it. Humph.
Mom is expected to pay her share of costs and that wouldn't be questioned.
If you weren't acting on an active POA you couldn't have been self dealing. Especially since mom signed everything.