The original question by Liz has not be completely answered. Some DPOAs are specifically permitted to gift those to whom gifts have been given before. Some estates are large enough that even if the elders live to a very ripe old age, Medicaid is not going to come looking for money. In such cases, I believe gifting is allowed, legal and not even immoral or objectionable. Does anyone know the rules under these circumstances? I would guess, but it's only a guess, that the typical Christmas gift level from previous years would be a guide as to the amount?
cornflake, my thoughts as well, Im not the one dipping in so quickly, you have no idea, when my mother was still in the E.R. my sister went digging threw the house for my moms jewelry, She called me at work to ask f I knew where the safety deposit key was. This is POA........nice.
Sounds like I am hearing a possible contesting of the will on the possible basis that it was changed when your dad was not competent to change his will? Has the will been changed? Were you aware of a previous will or have a copy of a previous will that was made when your dad was still competent? Has your dad ever been declared incompetent by a doctor or by a judge? If he's not ever been declared incompetent, then he can sign anything he wants to.
I'm with cornflakes, your dad's the one needing protecting from the misuse of his money which you should report for his sake so that money can be used only for his care until the day he dies.
I think possibly a forensic CPA need to go over your dad's tax returns to see where all of this money is going to and if gifting have been paid if there has been that much money given away.
The IRS might even want to know where these people are all of a sudden getting all this money from that is possibly enabling them to live higher than their usual taxable income? I don't know but they may owe taxes on the money given to them by the POA from your dad's account?
Given the current situation, if he gets milked down to where he must apply for medicaid before 5 years is up, he is going to be financially up the creek when they do their 5 year look back and he could be disqualified because it was all given away!
Now that is a real worry to focus on protecting him from.
In my opinion, financial inheritance is gravy on top of the preparations that we make for ourselves over the years for our own retirement.
Sorry but I just don't agree with the part of protecting yourself. Dad's money should be used only for his care until his dying day. After that it is distributed as per his will's wishes.
Mom passed, dad has Alzheimers in a comfortable home, she got him signing things, I was left to clear out the estate, by myself, left in the dark, the estate attorney , tells me the bare minimum, This is a new one for me....
Oh, I'm sorry I read far too fast. She's gifting members of her own family. They need to be informed that this money is not being given to them legally and must return it for your dad's care.
ellie6928, you protect yourself by refusing all gifts that your sibling tries to give you that you feel is coming out of Dad's wallet. That way it will keep you out of the loop if your Dad needs to use Medicaid at any time during his care. Medicaid is sharp, they know how to investigate money being sheltered even by moving monies around or by gifting. Your sister could have a rude awaking.
You need to report what your sister POA is doing with proof to the DA and or Adult Protective Services. about what is going on with your mother. Your sister is creating a big penalty if she needs Medicaid and a huge tax liability for your mother';s tax return for gifting. You other siblings need to be informed that what the POA sister is doing is illegal and they should return the money which unfortunately is going to cause a gifting tax liability for them on their tax returns. Aren't some families just wonderful? I'm sorry this is happening to you.
Sounds like I am hearing a possible contesting of the will on the possible basis that it was changed when your dad was not competent to change his will? Has the will been changed? Were you aware of a previous will or have a copy of a previous will that was made when your dad was still competent? Has your dad ever been declared incompetent by a doctor or by a judge? If he's not ever been declared incompetent, then he can sign anything he wants to.
I'm with cornflakes, your dad's the one needing protecting from the misuse of his money which you should report for his sake so that money can be used only for his care until the day he dies.
I think possibly a forensic CPA need to go over your dad's tax returns to see where all of this money is going to and if gifting have been paid if there has been that much money given away.
The IRS might even want to know where these people are all of a sudden getting all this money from that is possibly enabling them to live higher than their usual taxable income? I don't know but they may owe taxes on the money given to them by the POA from your dad's account?
Given the current situation, if he gets milked down to where he must apply for medicaid before 5 years is up, he is going to be financially up the creek when they do their 5 year look back and he could be disqualified because it was all given away!
Now that is a real worry to focus on protecting him from.
In my opinion, financial inheritance is gravy on top of the preparations that we make for ourselves over the years for our own retirement.
Oh, I'm sorry I read far too fast. She's gifting members of her own family. They need to be informed that this money is not being given to them legally and must return it for your dad's care.