Follow
Share

Ours is a sad story like so many others. My in-laws were horribly abused by one of my wife's siblings. My father-in-law, who had his faculties, finally changed his POA to us last year and we took over their care. At least we were able to give him a descent last nine months and a real funeral service...unlike what would have happened.

Meanwhile, my wife's sibling took pretty large chunks of money from their parents including approximately $30,000 in cash after refinancing the reverse mortgage to take out more equity.

As this all happened within the last five years, we have been advised that in order to obtain Medicaid, we have to show that any large withdrawl over $1,000 was not a gift but theft, requiring criminal charges or a civil suit at a minimum. In fact, when I approached the local Medicaid office late late week, I was told to come back wtih a criminal complaint and a filed out application.

We really don't want to prosecute my wife's sibling. While this person has been down a bad path, we really don't want the stress or knowledge that we sent a loved one to jail.

We've heard from a bystander that we cannot be forced to prosecute a family member. All of us live in NJ. Can we be forced to take this drastic step?

This question has been closed for answers. Ask a New Question.
There is no way that my wife's sibling can come up with the receipts to show that the money was spent on Mom's and Dad's care. There's no way that sibling will pay back a dime.

OK, as hard as it is, we'll go forward and file those charges as soon as possible.
Helpful Answer (3)
Report

I assume your MIL is still alive?

I think you'd have to undertake any criminal charge on behalf of your deceased father (and/or living MIL) pursuant to any authority granted in his Will and/or Trust, as well as the authority you have to act on behalf of your MIL.

That would be the issue of "standing" that might have to be addressed first. Since they were the ones financially abused, unless the children were affected, you'd have to "stand" in the shoes of your in-laws to prosecute...at least that's my interpretation from working with litigators and some limited criminal work.

As to the issue of Medicaid forcing prosecution, that's well beyond my knowledge. There are others here, including Igloo, who are Medicaid experts and hopefully will come along to help you.

And I'd be careful about listening to advice of a "bystander".
Helpful Answer (2)
Report

No, you can't be forced. But Medicaid will be excluding many months of paying for her care if you don't. People can't give away money and then claim hardship and ask taxpayers to pick up the tab. If she didn't GIVE it away, then they stole it. *shrug*
Helpful Answer (2)
Report

That's a good point about the reverse mortgage potentially being fraudulent. That may, in fact, be the case. My wife's sibling had POA over all their affairs and may have use it to refinance. It is possible that either the signatures on the application were either forged or cohersed. If forged, we might get somewhere. If cohersed, we'll likely get nowhere. My FIL did not remember signing anything of the like and, as before, had his faculties. My wife's sibling claims that the action was taken in response to the direction of her dad. This person also claims that all the bills were up to date when I've totalled almost $14K in unpaid debts that have sought repayment since we became the Attorneys-in-Fact.

Thank you, MaggieMarshall, for your insight as well. That's the problem I think we're facing. My MIL cannot afford the penalty.

Like I initially wrote, our sad story is probably a lot like many others out there. But it's still sad.
Helpful Answer (2)
Report

I'm sorry it is no fun to have to press charges against a family member, but if they stole $30,000 plus, put that into perspective and man up and do it. Otherwise, because of the Medicaid penalty period, that money comes out of your hide, which hurts either you because instead of a retirement with financial security and a little travel, you will be struggling with the finances; Mom because you can't afford the care she needs; or maybe your kids who could have used that in their college fund. You can choose to hurt either the guilty party in the family or the innocent people in the family. You can give Sis the option to pay it back or document that it was all spent on Mom's care in some way and see if she can, but if that doesn't happen and you don't prosecute, or at least report it as a crime and let someone else decide whether to prosecute or not, you are making the wrong choice.
Helpful Answer (2)
Report

Thanks to everyone for your encouragement! We hope that all works out.

In terms of when the house was refinanced, that happened only a couple of years ago. Unfortunately, very little of the money went toward their care. The vast majority walked out of the bank in cash. That's the basis of the criminal charges. We could go further based on the abandonment/neglect, lack of medical care, etc...but one charge is enough.
Helpful Answer (2)
Report

Thank you, GardenArtist. We do have standing in that we would be prosecuting on the behalf of my still living MIL using temporary guardianship that was just granted. You are quite correct in that there must be a victim in order for there to be a crime. If no one will stand in for the victim if the victim is unable to stand in for him- or herself, then the crime will go unprosecuted.

We are wary of such advice...which is why we're asking this community. Our attorney does not seem to think there is any way out of taking this step. However, one never knows what options might be hidden that others may know...unless we ask.
Helpful Answer (1)
Report

Best of luck to you in deciding to proceed with the charges. Actions have consequences. Fines or jail or not on you, let them own their own behavior
Helpful Answer (1)
Report

I know it can't feel good or right, but without a doubt you are doing the right thing. In the long run, it is no good for sister to be allowed to live life without character and without consequences even if that's exactly what she expects will happen. bless you all!
Helpful Answer (1)
Report

runragged, I am so sorry you are in this position. There is no way you can serve the best interests of everyone in the family when those interests conflict. If your wife now has POA her primary responsibility is toward her mother. It must be very painful to have to me the one who draws down the consequences of Sister's actions on Sister, but covering up for her hurts Mother.

I wish you strength as you and your wife do what you have to do for her mother's sake.
Helpful Answer (1)
Report

See All Answers
This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter