[PA] What should a power of attorney do when a parent’s funds are running out?

PA Estate Planning

Dan

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As your mother’s POA, you have the legal authority to make financial decisions on her behalf under Pennsylvania’s power of attorney law. This includes managing her bank accounts and ensuring her funds are used for her care and well-being. However, it’s important to maintain clear records of all transactions to avoid any potential disputes or misunderstandings. Pennsylvania law specifically requires an agent to keep a record of all receipts, disbursements, and transactions made on the principal’s behalf (20 Pa.C.S. § 5601.3).

Joint accounts can complicate financial management, especially when one party is incapacitated. While you have access to the funds, it’s crucial to ensure that all expenditures are for your mother’s benefit, as this could be scrutinized if there are any legal challenges.

If your mother’s funds are depleting, you might need to consider Medicaid for her long-term care. Medicaid has strict eligibility requirements, including asset limits, which might require “spending down” her assets to qualify. In Pennsylvania, any assets transferred, sold, or given away during the 60-month look-back period are reviewed when a person applies for Medicaid long-term care (PA Department of Human Services; 42 U.S.C. § 1396p(c)). This process must be done carefully to comply with Medicaid rules and avoid penalties.

Elder law attorneys specialize in issues affecting older adults, including financial planning, guardianship, and long-term care. They can provide guidance on managing your mother’s finances and ensuring her care needs are met within legal frameworks.

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Pennsylvania. I’m serving as POA for my mother and have questions about her dwindling money and upcoming housing concerns. She has a dementia diagnosis.

Lexi, Chatbot

I understand that managing your mother’s finances and housing situation can be very challenging, especially with her dementia diagnosis. Can you tell me how long you have been serving as her power of attorney?

Since 2013.

Lexi, Chatbot

Have you already taken any steps to address her financial situation or housing concerns?

I took the steps I knew to take, but now there is so much unknown.

Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they’ll be able to help with your mother’s finances.

It’s just a messy situation.

Dan

Hello, and welcome to our service. My name is Daniel, and I’ve been a licensed attorney for over 22 years. I’m sorry you’re dealing with this situation, and I’ll do everything I can to help. You mentioned serving as a power of attorney for your mother in Pennsylvania, with concerns about her dwindling money and housing due to her dementia diagnosis. Could you tell me more about any steps you’ve considered or taken so far regarding this?

The biggest change I made was taking her out of a nursing home facility that was very expensive, plus caregivers who came in, which was about $30,000 biweekly, and moving her to a cheaper apartment with caregivers I found. But it’s still costing more than she receives each month. I’ve also been in the process of spending down her funds. I was hoping to have more time and to pay some costs myself, but because my corporate job suddenly ended, the money has run out much quicker than I expected. There are some complexities around the joint bank account.

It’s deeply intertwined household and caregiving finances with poor separation during a prolonged crisis, especially since there was caregiving, I became unemployed quickly, we used cards for shared expenses, and she also had and used one of the cards.

Dan

It sounds like you’ve been doing a lot to manage your mother’s care and finances. Could you let me know if there are any specific legal documents, like a power of attorney or guardianship papers, that you have in place for your mother?

Yes, I have been her power of attorney since November 2013.

And I’m her only child.

Dan

Thanks for confirming that. Could you tell me more about the joint bank account and any specific legal complexities you’re facing with it?

It’s a joint account we’ve had since I was a minor. No one ever said it was an issue or advised against having it until about a year ago, when a different bank was thrown off by the joint account with me being POA. There’s just a lot of joint spending, joint money going in and out, and lots of money going to caregivers.

Dan

Got it, thanks for explaining. Have you consulted with any legal or financial advisors about managing these joint finances, especially in light of your mother’s care needs?

Not fully. I did go to an elder law attorney about 10 months ago, but they couldn’t really help because she had too much money but not enough money. I’m sure you know what I mean. That seems to be the recurring issue. But all of a sudden there’s much less money, and we are unsure how to continue paying for her housing, care, and living expenses, and my own.

Dan

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