If a principal instructs an acting Power of attorney to take reimbursements before paying third parties, can the th acting POA?

Asked about 2 years ago - Hazel Green, AL

I have both durable power of attorney for my mothers finances as well as her health care. She is alert and able to make decisions. she has instructed me to take reimbursement for my expenses such as fuel, lost wages etc., prior to paying any costs associated to her admission into a nursing home.

Attorney answers (3)

  1. Douglas C Martinson II

    Contributor Level 13

    Answered . You need to consult an attorney and get a contract to perform those services. Medicaid recongnizes the contract and won't treat any payments to you as a transfer. If you just make payments to yourself, they will question it and may impose a penalty.

    I would be happy to meet with you on this matter. But don't do self Medicaid planning as that can cause a lot of problems. There are other possible benefits to explore, Veteran Benefits, etc.

    Doug

  2. Joseph Franklin Pippen Jr.

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . I would have written contract with mom concerning her wishes to pay or reimburse you for expenses.
    This will avoid conflict with siblings later.

    The answer given does not imply that an attorney-client relationship has been established and your best course of... more
  3. Steven J. Fromm

    Contributor Level 20

    1

    Lawyer agrees

    Answered . Mr Pippen offers sound advice. Get it in writing and have mom sign the letter and have her sign the check for reimbursement. Be sure she puts in the memo part that it is a reimbursement. Document this transaction and any other fully and get an estates attorney to assist you here. Watch out for any gift tax implications.

    Hope this helps.

    Please remember to designate a best answer to your question.

    Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is sjfpc@comcast.net , his website for more tax, estate and business articles is www.sjfpc.com. and his blog is

    LEGAL DISCLAIMER Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

26,416 answers this week

2,991 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

26,416 answers this week

2,991 attorneys answering