A salary was never specified in the documents my mom prepared before her stroke. My mom was organized, and had prepared these documents in case. They proved necessary, as she had a stroke almost 6 years ago. She named my oldest sister the POA. I'll call her "S". There are 4 of us girls. That just made sense since "S" was the oldest and lived closest. Although my mom is in a 24 hour/7 day a week nursing facility, the POA ("S") asked my 2nd oldest sister, ("D"), if she could receive a salary for her time. We were all distraught and of course "D" was happy that "S" was close in distance to be able to help my mom, and so of course said yes. The third oldest sister, ("L"), and me ("B"), were never consulted, so now "S" has been taking a salary for almost 6 years. "S" claims that maybe she hasn't been taking it the whole time, or maybe she just takes it when she needs it, but we have NO visibility and are left frustrated. My mom has a sizable estate, and we have NO idea what "S" has been doing. "D" and "B" (me) have been asking for copies of the financial records for months, maybe years. We know for a fact that my mom has listed all 4 of us as equal beneficiaries in her will, but we're afraid that "S" is decimating the estate, and using the funds however she sees fit, rather than discussing them with us. "S" is angry that we are even discussing money since my mom is still alive. She feels that we care more about the money than about my mom which is ludicrous. "S" is probably being responsible, but don't we have a right to know what is going on since we are beneficiaries of the estate? Since "S" won't share any of the financials, it gives us the impression that she is hiding something. What do we do?
If an Op snaps back a criticism to caregivers trying to help, 100 posts!
Also, mean, rude people that drink and swear, make outlandish statements, attack others, vilify decency have an almost cult-like following by certain posters. It seems similar to the often described 'Stockholm Syndrome' in which the victim identifies with their captor, even protects them and commits crimes for them. Or, maybe similar to what happened in history with hitler, and now with trump. I have seen it, but really cannot explain it. The followers are victims-must have been abused or are being severely abused so they feel comfortable with abuse. Or, feel better when they feel uncomfortable. This forum serves many purposes, and I like to see it when someone breaks free from their troubles.
Or it was. I'm sorry for your loss, and I'm sorry for the havoc that your mother's affairs wreaked on your family's internal relationships. It seems to be a common thing that people don't like to be questioned or challenged and communication breaks down irrevocably because of that defensiveness. I wish I had some constructive suggestions for repairing the damage, but I'm in no position to advise. It's a sad thing. Will you be able to set it behind you and move on?
I am currently mourning the loss of my mom who was a completely amazing woman. I am unfortunately also mourning the loss of having a normal relationship with sister "S" ever again.
And for those of you who think that money is the only issue, please explain to me how it is possible for "S" to take me off the list of those who have access to my mom's house? I traveled at my own expense to visit my mom. I walked in on my nephew and his girlfriend sleeping there. My mom and dad would have been so angry, not only because their unmarried grandson was using their house in this capacity, but that "S" took me off the list. I have never even taken a paper clip from my mom's house. "S" removed me from the list because she wanted total control. Now there is NO WAY for me to use the house without getting it approved by her first. Truth is that I don't see using the house anytime soon since I used it only to visit my mom. I really don't think she has a legal right to do that. And no my nephew is not paying rent, but he is covering his utilities expenses. I asked.
I get the fact that there are those who think I'm wasting their time and whining. I would just hire a lawyer if I could afford it. I thought that this blog would give me direction, and then at least I could move forward in the right direction. For those of you who choose to say unkind words, remember that is why most of us visit AgingCare.com. To seek help!
I don't look after anywhere near that much but accounting for each penny is darned time consuming never the less
And believe me, there were PLENTY of issues to deal with at the facilities.
capital receipts 80000 would yield POA 2000
capital disbursements 80000 would yield POA 2000
revenue receipts 80000 would yield POA 2000
revenue disbursements 80000 would yield POA 2000
management fee on the gross value of the estate assuming it was worth 1 million dollars would yield POA 4000
Making a total of 12000
Thats a lot of work - far more than I have to cope with and if you have a house worth that much then you would naturally want to maximise the income and therefore you would rent it out
I also hope she remembered to include it in her tax return - POA income is taxable in the UK and Canada not sure about USA
30 days x 24 hours a day=720 hours. 1400 divided by 720= $1.94 per hour. Wow, she really lined her pockets, Alarmed, too bad you didn't sign up for the job instead. (sarcasm).
Even when someone is in a care facility, there are still a lot of issues to handle, including dealing with the staff, ensuring proper care, dealing with nonfacility doctors, managing a portfolio (such as there might be one).
ADC, you're absolutely right that it's about the money. And I respect your courage for being forthright and "calling the shots as they are."
Anyone who thinks that $72K for 6 years of work is unreasonable isn't someone who understands the value of caregiving, hands on or supportive.
Alarmed and Alarmed Too, who don't you just hire an attorney if you think there's been financial malfeasance? You wrote that there was someone who would participate on a pro bono basis.
Your whole family needs to get past this issue and move on, and remember your mother, not the cost of care for her.
It is inconsiderate of you to ask for our help without finding out who the executor of your mother's estate is? Do you even have a copy of the will?
You feel so bitter and ripped off, then you should hire a competent attorney in estates and will to represent you. Then you will find out what your mother's will means in terms of your residual from your mother's estate. The eldercare attorney can also analyze whether the POA acted responsibly.
Before you hire an attorney or continue your practice of accusing the POA of mismanagement, I suggest you find books that explains wills and estates. Go to your library or buy two or three on Amazon. Even if you hire an attorney, you need to get smart about the terms that he/she will discuss with you. You may even need an attorney to interpret the will's terms to you.
In closing, it is very hard to lose your mother. I know that personally. But I still perceive that you feel that you have been cheated and resent your mother's decision regarding the POA. It is time for you to grow up and be responsible for yourself. I am so tired of hearing about your money issues. Hire an attorney to help you if you feel so cheated.
On to the POA and executrix
First and foremost POA no longer exists - it's over and done with and ceased the moment your Mum died.
If she moved her mother's grandchildren in then rent should have been paid unless they were taking on duties such as decorating gardening etc in return - my feelings are that she has NOT acted in her mothers best interest financially and that she should be brought to book for it - if you really want to go down that route. Personally? I would let it go because financially it won't be worth the money you would spend trying to sort it and it would cost!
California rules stipulate this sort of fee for a POA:
The attorney is entitled to compensation, subject to the terms of your Power of Attorney. If the Power of Attorney does not specify the compensation or prohibit compensation, the attorney is entitled to receive compensation as follows:
3 % of the money received
3% of the money paid out on the grantor’s behalf; and
3/5 of 1% of the average annual value of the person’s assets
Notably, a Power of Attorney who is paid is held to a higher standard of care than a Power of Attorney acting without compensation. The unpaid attorney is required to “exercise the degree of care, diligence and skill that a person of ordinary prudence would exercise in the conduct of his or her own affairs” while the paid attorney is required to “exercise the degree of care, diligence and skill that a person in the business of managing the property of others is required to exercise.”
Now on to the executor
You need to see the will for that will name the executor/executrix and you should be aware that if she is named she is actually entitled to take some money to cover expenses but she had better itemise them and I would advise her in writing of that. I have found this in the California rules but your state may be different:
Yes. The executor has the right to charge a fee or “compensation” for managing an estate. The Trustee Act states: “A trustee, guardian or personal representative is entitled to such fair and reasonable allowance for the care, pains and trouble, and the time expended in and about the estate, as may be allowed by a judge of the Superior Court of Justice.” While there is no set fee in the Trustee Act or elsewhere, the courts have developed “guidelines” for calculating the executor’s compensation as follows:
2 ½ % of the capital receipts
2 ½ % on capital disbursements
2 ½ % on revenue receipts
2 ½ % on revenue disbursements
2/5 of 1 % per year management fee on the gross value of the estate
It is important to note that the “guidelines” are just that, guidelines, and may be varied from in certain circumstances. For instance, the courts recognize that in some cases it may be appropriate for an executor to charge more compensation and in other cases, the guidelines may be too much. In this regard, the courts have historically considered the following five factors in determining the appropriate amount to compensate an executor if the “guidelines” are deemed inappropriate:
The size of the estate
The care, responsibility and risks undertaken by the executor
The time spent by the executor managing the estate
The skill and ability demonstrated by the executor in managing the estate
The results obtained by the executor in managing the estate; i.e., the extent to which the estate was successfully administered
Of course, if the Will sets out the executor’s compensation, this amount will be followed and the guidelines and the above factors need not be considered. There is also a legal presumption which states that if the executor is left a specific bequest in the Will, this amount is intended to be his or her compensation (this “presumption” can be rebutted by the executor).
The funds paid to the executor as compensation are deducted from the “residue” of the estate. The term “residue” refers to the funds that are left over after all the estate debts, general legacies and other specific bequests have been paid. In many instances, the executor elects not to charge compensation because he or she is either the only residuary beneficiary or one of a few residuary beneficiaries (i.e., one sibling acting as the estate trustee on behalf of his or her siblings). The compensation is taxable income whereas the inheritance is not so it may be more tax-advantageous for an executor to forego compensation, depending on the number of beneficiaries.
I have been writing to this blog for over a year. I have 3 sisters, and the oldest ("S") had been named POA after my mom had a fairly devastating stroke 6 years ago.
I have written about my concerns with my sister "S" giving herself a hefty monthly salary, despite my mom having 24/7 care in a nursing care facility. I have written about my sister "S" taking my mom's car (practically new at the time) saving herself thousands of $ in lease expenses.
When one of my other sisters ("D") questioned her about the car, "S" had a lawyer send us a letter, basically telling us to back off, and that "blood is thicker than water".
My mom passed away on April 3, 2016.
I was fortunate that I had just recently visited again in early March and was able to enjoy her company one more time. I live far away, but have managed to visit a few times a year.
I believe that now the POA status is no longer relevant, but it's possible that "S" is now the executor of the estate. I have to find out for sure. My mom never specified that the POA be paid any amount in the POA document, only what is reasonable and customary, but "S" took $1000 per month. This was going on for about 6 years. You do the math. That's $72,000 which she feels COMPLETELY justified in doing. I believe her car lease had been approx. $400/month, so there was additionally $24,000 in savings over a 5 year period for the car as well. She has never been transparent with ANY of my mom's accounts.
Sister "D" and I were almost willing to let it all go, despite our extremely strained relationship with "S". Unfortunately, following a visit in early March, "S" took me off the list of people who have access to enter the gated community where my mom's house was. Just to give you a little background... my mom and dad built this house 20+ years ago, and not only put each of the 4 daughters on the list, but their husbands, their grandchildren, and everyone they loved. They wanted all to feel welcome, and all to visit them. So when I went down to visit my mom, I stayed at her house as I've done for every visit. I chose not to let "S" know I was coming, as I just wanted to visit my mom. I arrived late at night and I walked in on "S's" son (my nephew) and his girlfriend who were sleeping/living in my mom's house. At this point "S" took me off the list, so that I would not have access to ever come and go again without her approval. "S" said "there are consequences to your actions" as she felt that staying at my mom's house without notifying her that I was coming was intolerable. Isn't moving her son into my mom's house (rent free I might add) more intolerable? I haven't even taken a paper clip from my mom's house without consent from my sisters. Is what she is doing even legal?