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She and I both care for him, he has mild Alzheimer's. I don't want her to go to jail , I just want it to stop. She takes 1,500 to 3,000 a month from him. If I go to bank to close and reopen another account , an investigation will automatically be started. She thinks she is not doing anyhting wrong taking his money!

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You will need a lawyer but there is a procedure known as a conservatorship that will solve the problem of improper withdrawals by having the court's review of expences. I tend to agree with the several writers who suggest that maybe the sister is justified but we really do not have the facts to make an informed decision. It would be helpful to have an disinterested third part take a look at this situation.
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This happened to me. We were on mom's account with mom and my sister always had access to the bank accounts. My husband got ill and was out of work for one and a half years. Mom lives with us in a duplex on the second floor. We had to ask mom to use some of her money when times were tough and we could not pay the bills. After all, mom lived there too and if we lost our home she would have lost her home too. When my sister finally checked the account she went hysterical and had my name removed from everything and took all my moms money and split it between 5 different accounts to hide it. If your sibling is using the money for the benefit of your dad then she should have no problem telling u what she is using it for. If you close the account and re-open another you will not be investigated as we were not. I had no choice in the matter as my sister started throwing her POA around. Is either of you a POA for your dad? If not, someone should be. Don't let this get out of hand or you will be in the same boat as my sister and I. That is, we don't speak to each other anymore and my mom won't speak to my sister since she took all her money and hid it. We had to have Protective Services recover all mom's money and now made my mom's brother her POA to keep sister and I out of the loop and in the best interest of mom. All monies have to be accounted for. If you don't know where the money has been spent and you feel like your dad has been financially exploited, contact the Department of Aging, Protective Services in your area for an investigation. Be sure that you are on the up and up cause it will also include you being honest as far as your dad's finances are concerned. They helped me get my mom's money back to her and that is the main thing. It's her money and not anyone's elses.
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Yes, there is more to this story. Step back and clean up this issue, and the relationship between you and your sister before it goes to hell over this issue. Get outside help/advice if you need to. You are going to be working together for a long time and the best thing you can do for your dad is achieve a positive collaboration. Right now you've got a push-pull, black-white, I'm right-you're wrong control thing going, (she thinks she's doing something that's ok and you think you should be able to just block her) and instead you need to get on the same side of the table and work it out.
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If the money is being used to cover her own expenses while shes taking care of him instead of heving a job, its perfectly fine. She has to survive and no one can be in two places at one time. If this is the case, tell her to get a job & you find someone else to take full time care of your dad for such a small monthly fee.
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