Can a trustee GIFT themselves $11,000?

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My sister is POA and Trustee of our parents, 86 and 88 yrs old. I noticed 3 withdrawals from Dad's IRA totaling over $11,000 being deposited into an account not owned by my parents. Sister's first reaction was fear of being arrested, then her reason was she had to pay taxes and now she is saying she gifted it to herself. Is this legal? Our parents' bills are constantly past due. Sis herself has filed bankruptcy for the third time about 10 months ago. Sis has not come up with receipts for our parents to file income taxes for 2 years now.

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I would still get an attorney and file an APS report. If your sis was acting as POA, does that mean your parents are considered by their doctors to be incapacitated? If so, even if your parents defend her, she still clearly took advantage of two incapacitated elderly people and abused her legal authority as POA/Trustee.

A judge probably wouldn't look too kindly on a POA/Trustee exploiting elders and abusing their fiduciary responsibilities. Plus there is also the issue of your parents being subject to a Medicaid penalty because they will look at it as being a gift. A good elder law attorney can help you navigate these hurdles and see if there is anything that can be done to make your sister repay the money.
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Reply to FrazzledMama
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Mom and Dad will protect her.
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Reply to concerned151
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My parents will protect her. Sis turns on the tears around Mom and Dad and says I just want her in jail. Mom ends up feeling sorry for Sis and says no amount of money is worth this. I am so frustrated. I have to admit I would take great satisfaction seeing my brother in law in jail and my Sis cut out of the Will. I know this makes me sound bad but I can't help it, I am so shocked with all the stealing I have discovered. Dad's social security was no sooner deposited and Sis was in the bank withdrawing in while she was giving them free food from the food pantry.
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Reply to concerned151
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I think you had better talk to APS and the police. Sooner the better. Your parents need protection.
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Reply to rovana
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My brother and I are the new POA's for Mom and Dad as of July 9th. My Sis beat us to the bank and took all dad's money but $5. The bank said she was listed as co owner so there is nothing they could do.
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Reply to concerned151
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Does anyone have POA for dad? If sis was removed as POA, is there a successor POA/alternate who was named in his POA document? If not, you need to file an application with the court to be appointed his guardian and conservator.
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Reply to guiltandanger
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We did remove Sis as POA and today Bil took confused dad to bank to try to get dad to withdraw all his money. Bank mgr could tell dad was confused and Bil was irate. Mgr called me and I closed accounts again, opening in my name and mom and dad as beneficiaries. I am very afraid Sis will get confused dad to sign over his rental property. Help
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Reply to concerned151
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No it is NOT legal. That is called self-serving. If you are willing to take over as POA/Trustee, then see an attorney about petitioning the court to remove your SIS as POA and Trustee based on malfeasance of duty, breach of fiduciary duty. This makes me crazy angry.
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Reply to guiltandanger
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I agree with you Concerned! Call the police. I'm so sorry your family is having to go through this trauma.
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Reply to MountainMoose
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your sister and BIL must want to get themselves in more trouble - even if sister was able to convince your parents to sign over anything. its just going to make her look worse. its going to make her case of being innocent laughable.
she's digging herself in deeper.

she needs to understand. no gifts. no money. no property. no nothing. not until both parents pass.
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Reply to wally003
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