POA ends at death. Who is the executor of the estate?
Just to be clear, being POA or executor does not mean that you are financially responsible for the person's expenses. We are you paying mom's NH Bill so as to avoid applying for Medicaid?
Are you saying that you've prepared mom's 2017 taxes and there is a balance due? My mother, who was also private pay in a NH never owed taxes on her income after entering the facility because the Medical portion of the costs were largely deductible. Did you take that deduction?
Spring - what kind of taxes? Income taxes for '17 and '18? Unlikely there is any liability after taking deductions for long term care. Estate taxes? Unlikely there is an estate if you were helping to foot the bill for NH. Ditto on inheritance taxes, but tell us more.
The estate is responsible for the taxes is what we were told by an accountant. My MIL has days to weeks left to live and just had her taxes done and owes $2700 and if she doesn’t pay it, we were told the IRS will go after the estate. Even after death, you have to pay taxes.
Yes, THE ESTATE pays taxes; NOT the executor or POA, out of THEIR personal funds.
I THINK that the OP is asking if they are responsible for paying the taxes out of their funds, since they are paying for her care. Not, are they, as POA, responsible for ARRANGING to pay her taxes, which they would be.
Spring, my heartfelt sympathy to you and your family.
Since you and hubby were helping pay for Mom-in-laws long-term-care, chances are Mom-in-law won't have a large estate. If most of money from the estate has been used, and there would probably be some deductions that can be taken, Mom may get a refund. Let's hope so.
My Mother-in-law could not go on medicaid per the 5 year look back. Her husband passed away 2 years earlier from bone cancer which was the same time we noticed her memory loss. We are POA and Executor. No one ever told or showed us there were tax deductions we could take on her behalf for her care at her Alzheimer/senior care facility. Previous 2 years we had to pay taxes for her after we hired a firm that does taxes. This year we just did it ourselves since the last 2 years mistakes were found by the IRS. My husband already paid the taxes...federal state...and county. Everyone we spoke to told us we were not to pay for her care. But Medicaid was not available to her. What other option was there? She had a son who died from Opiod usage through all of this...and he conned thousands of dollars out of her. Like I said...there was no way to explain to Medicaid how her money was spent.
Spring18, not only can your MIL take medical deductions for long-term care costs and thus, unless income is very high, owe no income tax , but also, if you and husband were paying at least 51% of her expenses, you can claim her as a personal exemption on your own tax returns (and maybe some of her long-term care costs on your return, as well). It does not matter that you've already filed your and hers 2017 (and prior) tax returns -- file amended returns with the new deductions and exemptions for as many years as you've been doing this. You might literally have thousands or tens of thousands coming back to you from the IRS and your state tax commission.
POA ends at death. Who is the executor of the estate?
Just to be clear, being POA or executor does not mean that you are financially responsible for the person's expenses. We are you paying mom's NH Bill so as to avoid applying for Medicaid?
Are you saying that you've prepared mom's 2017 taxes and there is a balance due? My mother, who was also private pay in a NH never owed taxes on her income after entering the facility because the Medical portion of the costs were largely deductible. Did you take that deduction?
I THINK that the OP is asking if they are responsible for paying the taxes out of their funds, since they are paying for her care. Not, are they, as POA, responsible for ARRANGING to pay her taxes, which they would be.
Since you and hubby were helping pay for Mom-in-laws long-term-care, chances are Mom-in-law won't have a large estate. If most of money from the estate has been used, and there would probably be some deductions that can be taken, Mom may get a refund. Let's hope so.