Should I pay for Mum's aged care out of my savings, and can I reimburse myself later from her money?

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Cappuccino42 Asked February 2023

Should I pay for Mum's aged care out of my savings, and can I reimburse myself later from her money?

Mum receives pension from 2 countries and I have guardianship / administratortrator powers in one country where we reside (Australia). Whilst the governments have an agreement regarding the pension and talk to each other, the overseas pension goes to an overseas bank account. Mum has just used the overseas card here for expenses. I’m in the process of placing Mum into aged care (where both her pensions combined are needed). In essence it’s no problem as I was just going to organise to transfer money from her overseas account into her Australian account and pay the aged care.
Anyhow her overseas bank has now decided they need to talk to all their customers to update their details and have them answer additional questions OR they will block all access to account & money until the customer has done so. Something to do with politics and political ties which is very strange. Mum won’t be able to answer their questions and I’ve found out that my Australian administrator doesn’t hold power there and essentially mums pension will be going to an account that she will not have access to. The queue to seek their local guardianship is over 4mths and can take longer until they actually appoint. That means for 4mths-6mths, mums money would be going to a locked account and she wouldn’t have enough money for aged care here. To be clear Mum has no assets so is already entering on gov assistance. However this takes into account both pensions. If I pay for her aged care out of my own savings, will I be entitled to pay myself back from her money once we are able to unlock her account and I gain administrator powers in that country as well? What happens if for some odd reason they don’t grant me the administrator rights (Mum has relatives in that country although they have not been in contact for years).
on the other hand, if I don’t pay for Mums aged care from my own savings, I don’t know what else I can do. It’s cheaper for her to stay with me and not enter aged care (then I wouldn’t have to pay for her) but that would mean job loss for me which would also put us in a difficult boat financially. So damned if I do, damned if I don’t.

Elder Law Financial Planning Paying for Care Power of Attorney (POA)

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score 0 · Answer 1

I would suggest you locate a local lawyer about your situation. Some places may allow you to reimburse yourself; others won't.

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score 2 · Answer 2

Cappuccino42: Seek the counsel of an elder law attorney.

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score 0 · Answer 3

Maybe it takes longer with bank transfer, but, I don’t understand why would you not be able to transfer pension right now from other country to Australian account.
People often have pensions in different countries but can decide where deposit goes. Which many choose to be in country of residence.
You could also have promissory note if Mom can sign, usually they are valid for years.

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score 0 · Answer 4

What about a short term loan? I would hate for you to pay for your mom's care and then lose that money or have government count that money to lower your moms pension.

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score 0 · Answer 5

Banks all over the world, except in certain countries, have a policy in place where they follow the money trail. In the USA, people are only allowed to withdraw a certain amount below $10,000 at a time. If a person tries to withdraw more than $10,000 a day, the bank will question the withdrawal. Likewise, if more than $10,000 is deposited into any account, the bank will question the deposit and will hold the funds until they complete an investigation. The reason for this is that they do not want money, especially large amounts of money, getting into the hands of terrorists. Also, large amounts of money will cause countries to question whether it’s drug money.

Red flags will go up if you are trying to transfer large amounts of money. You will have to travel to the country where your mother has her money and seek out the assistance of an attorney there to help you with this problem.

Good luck.

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score 2 · Answer 6

You need atty involved. Two countries involved - and being able to pay yourself back needs to be straightened out by someone with legal expertise.

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score 3 · Answer 7

Definitely seek Elder Law Legal direction.

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score 0 · Answer 8

I am not in Australia so I can only speak from experience in the US but while finding and getting an appointment with an attorney who is experienced with international law as others have suggested, I would contact whoever approved the combined pensions being Mums portion of the cost for Aged Care. They must know something about the details of where her pensions come from since they approved the arrangement and can probably give you an idea about wether or not they would have a problem with you paying yourself back in the future and how to do that if their agency is going to scrutinize. I am also in the camp of don’t loose your job over this or delay the plans for Mum unless you simply can’t find another way. It sounds like you have all your ducks in order and this new political wrench in another country threw the curve ball so don’t let that change everything if you don’t absolutely have to. Also I don’t know what the country is you are dealing with but I would be a little worried this is a money grab and you might have to play slightly outside the rules if that’s what they are doing to Mum by changing the rules suddenly. That might mean coaching your mother through the questions on the phone or getting someone else to help, it might mean once able moving the balance from that out of country account to her Australian bank account so it isn’t lost or it might simply be an effort to clean up accounts not owned by citizens and a simpler process than it sounds. You have a better idea of what might be going on in that country than I do for sure. I hope you are able to work this out quickly and more easily than it sounds at the moment.

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score 0 · Answer 9

So sorry you are having issues with the bank. Are you able to wire transfer from the account in question to the care home? You might be able to have an electronic transfer to the care home and skip switching banks. Alternatively a cheque cut and fed exed. Good luck!

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score 0 · Answer 10

Ther are some foreign law attorneys. I doubt that an elder attorney will work in this instance and you might need both. As far as guardianship time over there can be similar to here. Plus there are many who do not seek placement until there is an emergency and the learning curve takes a while. You may have to take care of her for a little longer.

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score 1 · Answer 11

I agree don't lose your job and also do see an attorney. There is much at stake here for you, Can you get some help at home till you sort this out? It's a complex situation. Generally speaking, it is not wise for family to pay for a parent's care and hope to be reimbursed later.

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score 0 · Answer 12

Do Not quit your job that will make both of you homeless. You should take an emergency family leave from work and see an attorney now to explain why she should be placed into a facility. Your mother's, None of your funds, pays for her care. Looks like your mother's lack of access from her overseas pension at that bank makes the USA Medicaid eligibility messy. An attorney's advice is vital to obtain USA government's contact with that bank to explain need for your mother's emergency. It is her pension that she had worked for to pay for her care.

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score 5 · Answer 13

You need to speak to an elder law attorney about this. If you are guardian your elder's funds pay for that. You have information you cannot afford to do wrong, and will perhaps have other questions. I would see an attorney.

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Should I pay for Mum's aged care out of my savings, and can I reimburse myself later from her money?

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