The daughter of my MIL (lives in Arizona) get her SS Check. MIL has been living with us for the past 7 years. At the beginning she was sending her 200.00 a month, then 2 years after 400.00, now sending 600.00 a month. MIL receives about 900+ a month in SS. Daughter has Financial POA. MIL has no debts at all. We pay her expenses as needed. No big deal for us since we are able to pay all expenses without her check. My question is: Is it legal for daughter to get check, keep some of it and send her some? Morally I think is not right but I don't know if legally it's right? Daughter has her own money, really doesn't need her check.
If they determine that sister was gifted money then you will be stuck taking care of her through the penalty period.
If you are looking at government aid they want to make sure that situations just like this are not costing the taxpayers money that should be available from their own funds.
This is something that has to be looked into if you think that she is going to need LTC.
I have to say that I think that you all are very nice to help supplement sisters lifestyle. What is she going to do when she is not getting moms money, will you have to send her a check to avoid confrontation or conflict?
What she does with the money, who knows. We know in the month of October she took a short vacation and MIL did not receive check for Oct. Son does not want to pursue the matter. Waiting for when she goes into Nursing Home and they would do the leg work to get the whole check. He does not like comfrontations with his sister. If it was my mother, I would be all over her. lol
What is the POA daughter doing with the remaining money?
If the daughter is putting it in an account with her mothers name included as one of the account holders - and is perhaps saving it for a future expense like mothers funeral or dental work - whatever - then I’d say legal.
If POA is paying herself for her POA duties - then it must be written as allowable in the POA doc. Legal.
But, if the POA is just keeping the
money for herself without permission? Definitely illegal.
Just a note - don’t let the yearly Representative Payee report scare you - it’s really quite basic. If one is keeping up on account balances it should be easy enough to do the report in about 15 minutes. Typical, it does not require itemization or receipts.
EDIT: Is your MIL on Medicaid? Maybe the POA is doing this to keep her mother under the cash assets amount to qualify?
I would take your mother in law with your husband to the SSA with a note of diagnosis from her doctor and get her son assigned as rep payee. It requires some annual accounting, basically ensuring that she is the beneficiary of her SS.
You should not be paying her expenses until she is broke for the month. Get a rental agreement in place and allow her to pay her own way.
I would file a complaint against the sister un law for stealing her money. Most states do not allow a POA to benefit financially and only if it has a stated amount on the document can they get paid.
POA is a fudiciary responsibility and can land you in hot water by financially exploiting a vulnerable senior. Doesn't matter if she needs the money or not, it isn't hers to have.
I would move on this right away. I just fume when people steal from seniors.