How can I legally handle some tax issues for my Mom? Especially as she gets to the point where she can no longer understand or sign?

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I was told that to handle IRS documents for my mom I should fill out form 2848. But, I see that it just authorizes an accountant to do so. What about the forms I am filling out on her behalf to hire a caregiver...Employer Identification number, etc. and filing taxes for the employee, etc. I can't see how this form helps me to do that. Is there another form I should use? I have a financial POA, but have heard it is not enough for the IRS and they have their own form.

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That would be me also as well. I am also the executor of the mom's estate and the person who is named to follow her advanced health directives. Like I mentioned earlier my mother had everything put n order.
The one thing that I can not find out is I remember her sitting all of us children down and telling us that she and Dad had all of their funereal arrangement taken care of also. I know that they have a double burial plot where Dad is but she said that everything was pre-paid and I can not find any paperwork to show me the information. Think that we lost the pre-paid funeral deal when the funeral home was sold from a private family owned business to a corporate owned one. However the family business funeral home re-opened a few years later under the same name but they tell me there is no record. Same with the cemetery, I remember that was pre-paid also, but they say no also. Guess that the paperwork is hidden wherever she "hid" her sterling silver and chest and her "little gray box" that had all of her personal/family records in.
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BLS, assuming the house was transferred via deed to the family trust, it's now an asset of that trust and theoretically is "owned" by the trust.

Who was named as trustee of that family trust? There's likely a successor trustee identified, so if your mother was trustee, the successor trustee would handle the trust assets after her passing.
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Yes, it is in a family trust. Technically/legally I do not know if she is considered the owner anymore since it has been determined that she is not mentally competent. VA allows the family to keep the house and does not consider it her asset Medicaid would consider it her asset. We are paying the property taxes on it and will be reimbursed when the house is sold after she passes away.
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So does your mom still have the house?
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Mom went back to work in 1980 after not working since 1953 because my father went on SSI in 1980. She paid off the house and worked until she was 70. Mom originally inherited a little over $120,000 in the late 90's. She spent some of the money on fixing up the house, and bought an inexpensive car and the rest of the money she bought tax deferred annuities, some stock, CDs, and multiple small life insurance policies. She also put the her house into a family trust, meaning that the VA does not count it as her asset but Medicad would if we ever applied for it. She traveled outside of the country multiple times and managed to be able to withdraw cash out of her investments or cashed in matured CDs to supplement her SS check. Fast forward to 2012....Mom was no longer traveling and she was down to having a large annuity left which Mom/I were talked into by her financial planner to split into 2 separate accounts (big mistake) She did make a lot of money from that first annuity and almost had most of the original principal. As her POA I have had to cash in all of her investments to pay for her private home Assisted Living/Alzheimer care home. My mom is 87 and I can see that her health is going down. I think that there will be enough money to keep her living where she is since it is an "age in place" care home.
If you have money that needs to be put into tax deferred investments you need to go to a financial planner. There is a well known guy on the radio on Saturday afternoons that advises that people go to a planner that charges a fee for services rather than a % of your investment annually. Hope this answers your question.
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bls, guess my question was really that she stipulated that it had to be 2 drs., rather than just one, before the POA would be invoked, just wondering what her reasoning was for that
but, on the other note, do you mind telling a little about what she did with her money, because I have that situation and wanting to do the same thing
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Yes, my mom specifacally had it written in the paperwork that if 2 Drs wrote letters saying that she was incompetent then I would become her POA. This was due to save the family from getting court ordered guardianship established. She had attended an estate planning seminar way back in 2001 and had everything taken care of. My dad had passed away in 1997 and mom was still working until 2001. She had inherited some money from a relative and knew that she had to protect it and make it grow for her use in her old age. Most of monies saved during their marraige went to pay for parkinson medicine that they paid for on their own.
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After my FIL died, one of the people who came to his funeral was his accountant--a frazzled, depressed guy if ever I saw one. He was not very upset over our loss, but VERY upset b/c my FIL hadn't filed his taxes that year! I calmed HIM down and said I'd have the pertinent forms in his office within a week. (Regretted that comment the moment I actually looked in dad's office...he'd lived 14 years in his condo, there were 14 "towers" of paperwork....I just went through the last two, got the papers the acct needed and all returned checks (dad ran a little side business as a travel guide) and took all this mess to the acct. End result? He owed about $200 in taxes and the case was closed. Dad has been gone 12 years and I have long since destroyed all the "back taxes" files.
It can be scary and frustrating, but be aware that you are not likely to get audited, and often and "audit" is simply the IRS needing a small piece of information. You just fill out your forms and forget about it.
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was your mom saying that 2 drs. had to say she wasn't capable of living alone in order for her POA to be valid?
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Yeah I wanted to cover everything. I included the Drs letters that were needed in order for me to become POA? Mom had stipulated that 2 Drs had to say that she was not capable to 1 live alone, nor handle her finances. The pages that said that if I didn't not want to be POA anymore then my sister would take over. I also included the signature page containing the signatures of lawyer, witnesses, mom's signature, and the notary stamp. I did not want to have the IRS balk that something was missing.
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