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My parents entered nursing home 3 years ago. My sister who lives in the same town became POA, both medical and financial. We know she has used a lot of the folk's money for her own use. When the funds were depleted she refused to file for longterm Medicaid on my parents behalf because of the 5 year lookback. There's more to the story, but it comes down to the question of just how is the POA held accountable for the use of our parents money?

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Yes. It is fraud. But you need proof, in order to go after her.

Contact and elder care attorney.

They can get access to bank accounts to see when the money was moved and where or what it was used for.

If it was used for self-dealing, she could go to jail, if you press charges.
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I can attest to the fact, having been POA for my mom, that you have to account for every cent you spend AND show receipts for it. I had to turn in receipts to my mom’s facility and we worked together to make sure she still qualified for Medicaid.

If Sister won’t file for Medicaid, who’s paying for long term care for your parents when the money runs out?

I’d contact an Elder Law Attorney. If your parents can’t pay for their facility, they will ask you to remove them.
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