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A month ago my sister became our mother’s POA. My mother was diagnosed with Alzheimer’s a year ago and is in early-middle stages. My sister and mother had a joint savings and checking account for approximately 8 years. The monthly deposits in the checking accounts included my mothers Soc. security, pension and annuity. As a result of selling her home 4 years ago, my mother deposited the proceeds 202k from her home sale into the joint savings account. A few weeks ago, my sibling emptied the joint savings (202k) and transferred the money, into her own personal savings account. My sibling plans to use the money to purchase a home for herself and mentions my mother living with her for a year, if she can handle caregiving and placing my mother in a nursing facility. Can a POA do this? Will the 5 year look back apply if my mother needs Medicaid. I’m really dumbfounded that my sibling did this. They reside in Ohio, USA. Should I seek legal counsel on my mothers behalf?

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Plain and simple your sister is a thief. Yes this would fall under the 5 year look back too. I would look into getting charges filed against sister. That money is for moms care not for sister to use to buy a house with.
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It sounds as though you might need to file for emergency guardianship/conservatorship so that sis does not divert any more funds.

Lawyer will need to file some sort of action to stop sis from using any of mom's money.
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EllaW222 Aug 2023
Thank you! 😉
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I'm glad you are in contact with an attorney.

At best, your sister doesn't understand how Medicaid works. At worst, she is a grifter.

Wishing you luck.
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EllaW222 Aug 2023
A lifetime grifter. It’s really shameful.
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In addition, for members be careful:

OP (who just created the account) might actually be the one who is taking the 200k, and there’s no “sister”. Perhaps wondering how to do it legally, by looking at our suggestions.

OP: you need to ask a lawyer anyway about your sister. We don’t know all the facts, and all the facts matter.
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EllaW222 Aug 2023
No I am not “the sister.” .there’s nothing flakey about this. I am indeed the concerned sister who over the past 20 years lived across country, visited mom a few times annually my sibling resented my ‘not being there’ and we’ve not had a good relationship.
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How was your sister able to obtain POA with your mother's permission?

I would call your local police today to report fraud and theft.
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EllaW222 Aug 2023
The recently involved police department was contacted and informed of the recent bank transfer.
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What you describe is self dealing which a POA definitely isn’t supposed to do.

And if your Mom has social security checks being deposited the funds are not supposed to be commingled. Whoever is handling mom’s money has to be appointed a representative payee for social security & they should be accounting for the money spent
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Please ask a lawyer. All of this depends on the exact facts, intentions, etc.
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Hello, If any questioner's ever read replies, normally I feel like I'm answering my own questions. I realize certain folk provide regular answers and it's great discussing things with them.

I'm assuming that there's some bad history between siblings when answering this one. Otherwise I believe your sister should have communicated what she was doing to all the family.

The timing for your sister to obtain POA sounds a bit off. Why did she wait so long to get POA? is what I'm thinking, but also why is she transferring the money into her own account. A Will, if made, normally decides how your mom intended to divide her estate.

On the other hand, we could believe she has your mom's genuine interests at heart; maybe no other sibling has bothered to participate in your mom's care needs over the years, and she wants what's best for her, including living with her for a year to see how she gets on, and then maybe wants to use the money to fund Assisted Living. Maybe the speed at which the condition arose was a deciding factor in getting a POA; that might be smart thinking and not divisive.

I think a direct talk with your sister or, if you are not on speaking terms, getting a legal mediator to help It is a difficult one, as there are always two sides to a coin.

I do believe in seeing your mom's wishes through, and hopefully she made a will to say how she wanted to divide her estate.

I hope it's a good outcome for your dear mother. It's common for siblings to get embroiled in financial matters and I believe your mom's wishes should decide these things, but also your mother needs help and love through her life.

Take care.
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ventingisback Aug 2023
“why is she transferring the money into her own account”

It might be that the mom gifted it to the sister: as a thanks for helping her.

There are too many unknown facts. OP, please see a lawyer.

(Ventingisback)
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"Ohio has a 5-year Medicaid Look-Back Period that immediately precedes one's date of Nursing Home Medicaid or Medicaid Waiver application. During the “look back”, Medicaid scrutinizes all asset transfers to ensure no assets were gifted or sold under fair market value."

Source: https://www.medicaidplanningassistance.org/medicaid-eligibility-ohio/

When you wrote that your sister obtained DPoA while your Mom was living with *you*... this isn't normally how it happens... your Mom would have had to go to the attorney, who would have interviewed privately for capacity. She and your sister would have had to sign the PoA documents, in front of a notary (which is usually someone who works in the attorney's office). Then each of them would have gotten an original copy of the document.

Have you ever actually seen the PoA docs? I would first ask her to show them to you. Be aware that a PoA is under no obligation to prove they have the docs, so you might have to have the attorney write her a letter saying if she doesn't produce the documents, she'll have to do it for a judge in court. This cost is on you. And if you think she'd stealing from your Mom, you'll have to have hard evidence and the attorney will assess whether you have a winnable case or not. Then I'm sure a guardianship battle may ensue.

I think if I were you I'd consult with an attorney before saying anything to your sister.
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EllaW222 Aug 2023
I haven’t seen POA docs. I’m sure a guardianship issue will ensue. If a state becomes a temporary or permanent conservator, so be it. I’ll do what’s is necessary to protect my mother. The wheels are in motion. Thank you for your advice.
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POA does not give Sister this right. Sister cannot buy a house for herself and have Mom live there. Medicaid does not allow that. It looks like Mom gifted sister the money. Even if she claims she bought so Mom could live with her, its gifting. Why, because when the house sells, sister profits from the sale. A POA cannot enrich themselves.

The best your sister could do is put the house in Moms name only. Care for Mom in the house for 2 years and claim Caregiver allowance so she can remain there. If she puts her own money in, then she csn probably be on the deed too. Your sister needs to talk to an elder lawyer before she does anything. You need to stop her from using that money. Get her POA revolked. Mom has the money so you can become her guardian.
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