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My uncle is 83 and has a caregiver that he is constantly giving money to. He is kindhearted and has a lot of money, but this, I discovered after auditing his bank accounts, has been going on for years to the tune of $30,000 a month. The caregiver claims she never took any money from him other than what he offered to give her to help her out. He says he gave it willingly, but surely this is illegal! This is in Texas.

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I don't think that's fair, Cetude. The nephew was given power of attorney by his uncle, but that doesn't mean his uncle gave him any opportunity to use it. And as long as the uncle's competent, the nephew couldn't even look at a single bank statement without the uncle's permission. He's finding stuff out now, and he's pretty horrified by it apparently.

I'm just hoping to hear more about whether this kindly gentleman really has handed over that amount of money. I am agog.
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How many years? $30K a month? $360K a year extra? Really?! Surely the caregiver can afford to retire by now?
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Cetude, what a hateful comment. If you can't say something helpful, don't say anything at all.
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We encourage people to sign POAs in advance, while they are able and have the capacity. Nephew was no doubt named some time ago. Uncle has caregiver, things seem to be going well, uncle is paying caregiver. Then, boom, something happens which causes nephew to start looking, and what he finds is horrifying. You can try making a report to the local police and/or elder protective services, but I would not be surprised to find that caregiver has suddenly "left the area."
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If your Uncle is still of clear mind he can still give his money to whomever he wants. If he has dementia to a point that he can no longer understand the consequences of handing his money out, then there is an issue.

Usually if a caregiver is from a license Agency, he/she is not allowed to take any money. Unless it is an occasion gift card or $$ that is in a low amount and if that is allowed by the Agency.

Maybe it is time for the Uncle's Power of Attorney to see if he/she can start taking over the finances, such as the bill paying, etc. I remember my elderly Dad was more than happy to get that chore off of his plate :)
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You should talk to a good estate attorney & CPA firm with forensic accountants. Giving away more than $14,000 per year has estate tax implications. There is probably no way to recover the funds, but the elder's tax returns could be revised for the last 5-7 years to show payments to this caregiver above board, as a contractor. This would then be taxable on the contractor/fleecer's part. You might not be able to get blood from a turnip, but the IRS sure can. Sic 'em!
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FF since NephewPOA posts that he discovered this while auditing his uncle's finances, I think we can assume that the getting things in hand process has already been begun.
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The POA cannot exercise his responsibility without the permission of the person for whom he holds it, unless and until that person is recognised to lack capacity; and if you cannot do something, you cannot be held responsible for not doing it.

I am in the process of giving POA to someone now. I am 53. I do not expect him to need to exercise it for some time, if ever. The whole point is for it to be there in case, because you never know and if you wait until you do know you're likely to be too late.

Tinkster, true. I was taking his screen name of NephewPOA as a clue.
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Sounds like he was paying for the "services" of the caregiver. That would mean they are an employee and those payments need to be reported to the IRS. A lawyer may costs $$ but looks like at least a consultation is in order to see what your options are. Most Eldercare lawyers will do a free consult.
It is hard enough to find someone to care for the elderly without someone like that taking $ they obviously weren't earning
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There is no law other than the sheer gall and outright audacity of the caregiver accepting this money. I hope she has sleepless nights.
And OldBob-spot on correct, no doubt!
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