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Brother #1 is POA for  his 61 yr old brother with Parkinson's who is now on Medicaid and in a nursing home with some dementia. Bro #2 has no house or car and the home gets his $2,000 a month. All the bills now go to Bro#1 who can't afford to pay them. Can he give up the POA and can bro #2 file bankruptcy since he isn't always of clear mind? Thanks for any help at all.

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What kind of bills are being received? If the brother with Parkinsons doesn't have any assets, are we talking about credit card debt? If so, stop paying and send back unopened mail to sender, circle the receiver's name and address and write "Not at this address". Don't answer any calls from debt collectors or provide them with any other information except that he is in a nursing home with Parkinsons and on Medicaid. That's what we did for my broke in-laws when she had dementia and her husband had PD.

Are you talking about medical bills? If so, Medicaid pays for that.

No to bankruptcy. Please provide more details about what kind of bills he's still receiving.
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The problem I see when assigning a POA or an Executor, the person being assigned is not asked. I happened to be with my Mom when she did her Will and POA. Before that my parents had me, the oldest daughter and brother, oldest boy, both Executors. Would not have worked because I lived in same town as Mom and brother lives 8 hrs away. So I was made Executor of Moms will and assigned POA for financial and Medical. My signiture is nowhere on either document to say I excepted both. IMO, a person being assigned should be told what responsibilities that they will have. Then they can say yes or no. And they must sign off they agree to be assigned. Over the years it has been found my brother would have been a lousy executor. He hates paperwork because he deals with it daily on his job. He raised my nephew for 11 yrs and allowed his wife to do what he as the guardian should have done.
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I hate when people take on a responsibility (or are asked to) who don't know the duties of the job being asked of them.

Your brother's job as POA is to use his invalid brother's money to pay the invalid brother's bills. Under no circumstances does he use his own funds.

What kind of bills are you talking about?
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As POA #1 is NOT responsible for #2s bills. As said, he needs to send a letter with copy of bill attached telling the creditor that #2 is now in LTC on Medicaid and his only income is being used to offset the cost of his care. There are no assets. No money to pay for debts. A judgement can't be put against SS. Once you say Medicaid, the debtor should know there is no money and just write the debt off. Do not give the debtor anyway to contact you. Do not tell them the address where brother is. Send the letter certified mail. There's a tracking # so you can see where the letter was delivered, time and day.

POA stops at death. There is no reason for brother to give it up. Its a tool. It gives #1 the authority to talk to doctors and Nurses concerning #2s care. He can also make decisions for brother if he is not competent to do so.
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Riverdale Sep 2022
I understand POA stops with death. When paying bills after death If there is a joint checking does surviving member simply write checks leaving off the POA?
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Why bother paying for bankruptcy at this point?

The POA has no responsibility for paying with their own funds unless they signed accepting that responsibility on the specific contract in question. So don’t do that.

One can resign as POA following the appropriate procedure for one’s jurisdiction, usually involving timely notification of bank, home, and anyone else who accepted the use of the POA document. However, that means giving up any input on financial matters, like moving to another place if conditions deteriorate at this one.

Have a look at this link and consider if it would be useful to tell creditors he no longer needs services from to stop contacting him (his agent).
https://www.nolo.com/legal-encyclopedia/should-i-tell-debt-collector-stop-contacting-me.html
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Brother #1 is NOT required to pay Brother #2s bills from his own money. Doesn't matter that he is POA.

I would do a letter that states Brother #2 is in a nursing home on Medicaid and there is no money for any bills to be paid. Then send a copy to every creditor that sends a bill. (This might be worth seeing an attorney to have them write it. Then you just make copies and send out. An electronic copy would allow it to be customized to each creditor.)

It would be good for your Brother #1 to Google state statutes for POA for the state it is issued and being used in. This will help him understand what it means being POA and what his actual responsibilities are.

Read the POA, some have expiration dates and others require someone to put a resignation in writing. NO, POAs are not forever and just because someone named you doesn't mean you need to accept. Your brother can resign. I would read the state statutes before doing this though
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If you aren't of clear mind you should have a POA handling your finances; that is for brother number 2. If one isn't appointed then guardianship or conservatorship is required, and application to government programs will be done by that fiduciary whether it is the State or family.
Brother number has dementia. He cannot now serve as POA for anyone. Brother number 1 should pay his OWN bills; he cannot/should not pay the bills of brother number 2.
You need an elder law attorney to help you comb all this out and decide options to proceed.
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