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My MIL (96)has been leaving with us for almost 5 years. She used to live with her daughter on and off, and always close to her daughter(AZ). Her daughter complained so much, that we decided to take care of her (FL). It has been a challenge for us since she now has dementia. Her SS check goes to her daughter (she receives around 1,300 a month). My MIL gave her Financial authority over her finances. She sends her 600.00 a month. The questions is: "Is this legal for her to do"? She keeps the rest of the money. Thankfully, we don't need the money and my MIL does not need much.

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This is mil's money. Unless the daughter is using it somehow for her mother she is stealing. If you guys are doing the heavy lifting I would investigate this. Even if she has POA or guardianship this is not her money.
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No, it is not at all legal. It is stealing. Should your mil ever need a higher level of care than you can give her at home, the money will have to be accounted for. Many people live to be 100 these days and we never know what the future may bring.
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