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Asker
Posted about 2 years ago.

Maybe I ran 2 things together. I dont think G. is needed. Uncle is fine with POA. Reason lawyer gave to get G. was he could give away assets to "wrong" people and even have someone "undesirable" move in. Uncle saying he is POA and "people" are watching what he does with money and elder abuse laws, blah, blah. And he can not "gift" grandkids money at Xmas. All bonds are matured and waiting for them. So with lawyer saying 1 thing and uncle another, I dont get it. If Uncle is POA is there any reason grandkids cant get xmas gifts of cash?

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Asker
Posted about 2 years ago.

he could give money away to wrong people: he is Father, not uncle.

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Asker
Posted about 2 years ago.

Sorry, more info: bonda in fathers name with POD to grandchildren's name. Uncle is saying that means they must wait until death, I take it to mean: POD if bonds were not mature, they are. The gov. has even demanded he redeem them, he has refused because he does not wish to pay taxes on them, hoping to pass that to GK's too.

Mark Russell Lewis
Mark Russell Lewis, Estate Planning Attorney - Saint Petersburg, FL
Posted about 2 years ago.

Giving to wrong people is always a problem because POA does not remove the grantor of the POA's power to still act alone. So if Father is demented and interacting with questionable people you may need a G to remove power to give. If father is stable and not interacting with questionable people then probably do not need G for that purpose.
POA does not allow the giving of gifts unless it specifically says gifts can be made.
Bonds do not go to grandkids until death. POA could but does not have to redeem but if he did he would be well advised to reinvest insimilar POD bonds. Letting the bonds sit tight sounds reasonable without more info.

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Asker
Posted about 2 years ago.

Mr. Lewis,
Most of bonds: ones made out with POD to son and daughter are currently being put back into the pot, so to speak. In safety deposit box is mature bonds (roughly 15K to each granddaughter, not much compared to overall wealth) sitting. As I said each GC has just had new babies. To rest of family it would be nice to let the girls have before Gfather passes, so they can say thanks and he can see how much he has helped them. But know one knows if its allowed. If Uncle and brother (who are POA's) can't "gift" it, can Gfather "gift"? or because of AD paperwork can he not?
See our dilemma? How can Father "gift" to wrong people but not "gift" to his Grandchildren? Thank You for your help Mr. Lewis.

Mark Russell Lewis
Mark Russell Lewis, Estate Planning Attorney - Saint Petersburg, FL
Posted about 2 years ago.

He (father) can gift to wrong people by not knowing what he is doing and once you give the money to "crook" you can't get back.  Until he is legally incapacited and declared by a court to be incapacitated you can't freeze the accounts from him.
Again a POA does not have authority to make gifts unless the POA document says he can.  While it is nice to look after the GC its still his money and must be used for him to the exclusion of the GC.  He must support himself but he has no legal obligation to support the GC's.

Finally gifts to GC's can affect his Medicaid liability if he has to go to a Nursing Home.  You need to remember the assets are Father's and must go to his benefit first and to the exclusion of people he is not obligated to support - wife and minor children.  I assume that there are known of those so money must be for his benefit first.

Assets that are POD should be renewed as POD.  If that becomes a problem look to the POA does it allow the creation of a living trust then that may be the way to go?  I strongly recommend a lawyer with a strength in estate planning, Medicaid, POA's and G's.

Mark R. Lewis, Sr.
Mark R. Lewis, PA
Attorney at Law
email mark6073@yahoo.com
6830 Central Ave., Suite D
St. Petersburg, FL 33707
Tel: 727-381-1946
Fax: 727-384-4633