Dear Len & Rosie,
My Dad is 90 years old and in excellent health except for losing his eye sight to macular degeneration. He can no longer live alone. He has approximately $300,000 in the bank. He has three children, and I understand that he can give us each $13,000 per year. Are there any circumstances that he can give us more? The reason for this question is the rule about not giving gifts over $13,000 for a three year period before you enter a nursing home.
Sandy
Dear Len & Rosie,
After my father's death, my mother Greta gave my brother Stephen a durable power of attorney. Mom was never all that good with finances, and all of us agreed that it would be better for Stephen to take care of things in case anything bad happened to her.
Now I am wondering if my brother has exceeded his authority. He borrowed almost all of her life savings, over $32,000, to keep his home out of foreclosure.
Stephen signed a note for the money and agreed to pay interest at 10% per year. Mom has since reduced the interest to 7%. The problem is that she does not even know how much money Stephen pays each month, because he handles all of her finances. Mom hasn't seen a checkbook or account statement since 1989.
I don't know what I can do. Mom hasn't got Alzheimer's or anything and she seems happy with Stephen handling her money. I don't know if I should sue or just leave it alone.
Edward