My sister and I have been jointly appointed as both Guardian and Trustee of our mom's person and estate. Mom is now in assisted care due to dementia. She is 88 and otherwise in good health. Her assets are in a trust account that she and Dad set up years ago before his death. She not in danger of running out of money anytime soon. We have siblings who could use financial help and are requesting distributions from mom's trust. One of the in-laws, (or perhaps outlaw), has suggested removing her from her "revocable" trust in order to put her on Medicaid, moving her to an AL facility that accepts medicaid in order to greatly reduce her expenses, and distributing the max sum allowed tax-free to each sibling every year from her trust account. His lawyer says the distributions can be legally done. My lawyer says there's a conflict of interest with my sister and I being Mom's guardians, vowing in court to act on her behalf to protect and provide for her, and then using our position as trustees to begin distributing her assets before she's deceased - even before she's sick. Wording in the trust document provides for changes to the account only such as that will benefit the trust beneficiaries: the four siblings AND Mom since she is still alive. This issue seems to be coming dreadfully close to fracturing the family.
Really, on top,of everything else...you and Sis would leave yourselves open to elder abuse too. (Taking advantage of elders financially is elder abuse.....)
I would not go along with it. Moral and ethical aside...there is also criminal issues. Doing what is proposed would be a breach of the fiduciary responsibility...just say no.