She has Alzheimer's and is 87. I have DPOA. I moved it from checking and to savings. I am worried she will just spend it away at the Dollar store. I pay her bills and she has some money to spend how she wants, but she always goes over and dips into her savings. I don't want to hide it from her, but she will need it later down the road. She could use some house or car repairs (may not be driving too much longer). She owns her home and doesn't need in-home care but could use it.
I would not bother with car repairs. As a matter of fact she probably should not be driving so...tell her that you sent the car for "repairs" and sell it.. "repairs" take a long time now with the supply chin issues.
If she will remain in the house make repairs and changes that will make it safe for her and easier to sell if and when that time comes.
If you do not wish to make repairs then open another account, one she is unaware of. You have to "hide" it from her in order to keep it safe for when it is needed.
If she does need caregivers use that account to pay for them.
That is an exempt asset that won't get her in trouble if she needs Medicaid.
Keep the home repairs up, as her house is another exempt asset, but you may need to sell it (in good shape) to get her the care she needs later on. Also, install some safety equipment and a wheelchair-in type of shower, all good investments for her care. A bathroom remodel might take the whole check.
Keep the car repaired, and think of fixing it up to sell. Driving is a competency/safety thing, not an age thing, but 87 is getting up there?
I'd never invest in CDs anymore. They lock up your money and don't pay anything anyway.
Yes, DO hide the money from her.
My brother did just that with my mom's money, and that was how we had money to pay for her funeral.
Some credit unions offer a real short CD where you are less strapped in: You can choose terms from one month to eleven months. If you go month-by-month, you can easily pull out for something unexpected. But if she has a decent amount of savings, you could go longer. Or just put a % of the 10k in short one.
I would talk over legalities and options with her financial institution, or another, to see what options you have.
I am not familiar with elder laws, legalities on how to handle their money, etc., but with POA, can you open a new account to keep the money available, but just not tell her? Or, b/c that comes off as deceitful, maybe run it by an attorney? Some do quick consults over the phone, especially if it sounds like you might need a lawyer down the line.
Good luck in planning how to protect this amount of money. If Mom is 87 and seems relatively happy with current spending at her dollar store, then get this tucked away safe.