ACT Inheritance concern

[Corbett]

After my father passed away 9 months ago my sister and I had to sell the house and my mother had to move into a nursing home because
she has dementia. My sister and I now have POA of her fiances. The nursing homes fees are about $474 more than her pension per fortnight.
A bit concerned about our future inheritance. At this rate the approx $295,000 in her account will continue to decrease.
Are we in a situation where we can receive financial gifts at all from our mother before the nursing home fees eat away at her money?

 

[Tim W]

Are we in a situation where we can receive financial gifts at all from our mother before the nursing home fees eat away at her money?

No.

Let's be clear about one thing.
While she's alive, even without capacity, it's not your inheritance, it's her money.

Your duty as a Power of Attorney Holder (even if you are not formally appointed)
is to protect and preserve her assets on her behalf, and apply them to her interests.
That includes using her assets to meet her living expenses.

While she lives, taking any of her assets, and applying them to yourself/ yourselves *
such as by giving yourself gifts, is a fundamental breach of that duty.
And separately, can be a fraud on the care provider.

She doesn't have capacity, so doesn't know that you're conspiring to steal from her.
But now, you know that that is what you'll be doing.
You may care to make your future choices carefully.


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* Other than fully accountable reimbursement of reasonable expenses you incur in doing your duty.

 

[Corbett]

So what can she spend her money on other than medical bills?
So she can't buy us a gift at birthdays etc..?
What is the gifting rules allowed by centrelink for?
So after about 7-8 years when her money runs out from the nursing home fees what happens then, seems a bit wrong to me.

 

[Atticus]

So after about 7-8 years when her money runs out from the nursing home fees what happens then

Obviously I don't know your particular financial arrangement with the aged care facility, but there are caps on the amount that the facility can take.... The maximum amount of means tested daily care fee is set at about $28,000 PA, with a lifetime cap of about $67,000....

Don't know what the $474 above pension per FN is that you say is being paid, but if it's a combination of the daily care fee & refundable accommodation deposit (RAD), the RAD portion of the payment will be returned to your mum if she leaves the facility, or to the estate if she passes away there .... May be worth you double checking all that with the facility .. Just taking $474 a FN on top of pension until the $295,000 runs out just does not sound correct to me

 

[rjm]

Correct me if I'm wrong. You're wanting to buy yourself gifts on behalf of your Mum? But you're worried about what happens when the money runs out.
I think her money will run out quicker if you buy gifts for yourself. Not rocket science.
Tim W, I don't think your work here is done😉

 

[Atticus]

she has dementia. My sister and I now have POA of her fiances.

So on the gifting thing .... She has lost legal (mental) capacity .... you can't then just decide on her behalf that she would like to buy you a new car or $xxxxx each for your birthday or whenever .... That's not what the centrlink 'gifting' rules are about either.

 

[Corbett]

What is the gifting rules allowed by centrelink for?

 

[rjm]

It's for people of sound mind who are still managing their own affairs who want to gift money to someone.
Your Mum has dementia, so she can't gift you anything because she has lost the capacity to act in her own best interests. That's what you're supposed to be doing now.
I doubt you're going to get anymore help on here. Assisting people to fleece their vulnerable parents is not something anyone who regularly posts is going to lend a hand with.

 

[Tim W]

... fleece their vulnerable parents...

Commendable euphemism for "stealing', that.