My Mom is spending all her money not thinking of nursing home care, medication & funeral arrangements. Advice?

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Alcoholic. She is getting demented, angry if she doesn't get her way and very mean to her daughters. Is there anyway we can get the situation under control? She hangs up on us or calls and tells us to do something that she thinks she is having a severe health problem but yet when one of us go there to help she is dressed to the nines and smiling saying it all passed. Years of alcohol has definetly affected her mind but if a doctor tells her to quit drinking she doesn't go back to him. She recently inherited some money thru my step-sister who passed away and Mom is spending it like water. She lives in a Senior Apartment Place and has no other money for her future. All advice with this situation would be helpful.

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Any loan that is written of that is 500.00 or more will generate a 1099 to the IRS and the tax payer is required to pay taxes on that as unearned income. That is why if you make deals with creditors you need to be prepared at tax time. This extra income can sometimes bump a person into a higher tax bracket. Seems unfair but after working in the tax office for 11 years trust me, many people hit with this when they had debut written off.
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She had both federal and private. The 1099 was for the federally insured loan.
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Oh, Pam, first of all, I'm so sorry for the loss of your daughter, then I hate she still had student loans; were they the federal or private? and was she still in school? I'm concerned about my son getting into that, aggravated today about him even having to apply but then the fact they let you send the stuff in without signing it, they just don't tell you they won't do anything with it till you do the they lollygagged around another week before they did so now there's a problem and school is of course now closed for a week; dontcha love it?
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debdaughter, when I sent the death certificate for my daughter to the lender for her student loans, they immediately issued a 1099 for the principal and interest.
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Pam, I did learn about that; think that only applies if you actually just quit paying anything on it and they actually write it off, right? but didn't think it applied after they passed away, does it?
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but she has to be able to get it
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Private: An alcoholic can't control her money-on line or otherwise. It's drank away.
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Someone here mentioned managing bills. What I may suggest is setting up online bill pay for the person who has spending trouble and knowing what the limits are. What you do is start by putting the money into a bank account. What you may also want to do is to restrict her access to that account even if you have to move her money to a new account. This is where are you can set up online bill pay for all of her absolutely necessary expenses such as her housing and anything else that must be paid. You can also set up a trust for any leftover money, but give her a small allowance. Another option would be to become a representative payee. Even as a representative payee, you can still set up online bill pay for her bills to come out automatically each month, but set it up from your and I'm glad no one have access to that bank account in a manner that allows them to pull the money. I've heard nightmares about people who give access to their bank accounts, only for them to be ripped off. This is why you want to set up online bill pay for her from your end. That way, you know that the most important bills are definitely getting paid. If you've ever used online bill pay, it's a blessing if it's set up right. After setting up online bill pay for her necessary expenses, you can get a new ATM card and cancel her current one if she has one. Most bank accounts these days have one of those cards you can use at the checkout. The most important thing now is to see if you could speak with the bank manager on restricting your moms access to the account and explain why just like you did here. They should understand if your mom is losing competence to handle her own affairs. There may be some things that she may need to sign in order to give you that power of attorney. Just have to speak with your bank to see what they require. If required, you may very well have to go for guardianship to make everything easier.
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debdaughter, when credit cards are not paid off, the lender can send a 1099 to you showing the money as untaxed miscellaneous income. That creates problems with the IRS who insist you pay the tax.
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credit card balances are considered income?
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