My sister is caring for both my parents as my father is on Hospice and mother has Alzheimer's. As a family we agreed my dad's estate would pay a monthly "gift" amount so she could quit her career as an RN and give full attention to their care. She is not an employee of the estate nor does she receive "compensation" so that she does not have a heavy tax burden by the gift money. My brother is the POA and now says he is paying her as a medical professional and will be deducting the money he sends her as "medical expenses". I get that the deductions are beneficial to the estate but it would increase her taxes by 35% (according to her accountant) because she would have to set up an at-home care business because she could no longer claim that income as a gift from the estate. Does anyone have experience with this that can give some advice?