? About holding a family members money for them

[pinkxray]

I have strange question

Dh's mother is a financial disaster. She is retired due to disablity. Her daughter is a drug addict who steals every dime she can from her

Mil asked dh, who is very good with dealing with finances to take her last bit of savings (12000) she just got in an expected windfall) and put it in his bank account and give her basically an allowance and pay her bills for her since she is constantly behind. It will also prevent his sister from stealing their moms money(last week she found her mothers bank book and took 2 grand)

I'm just not sure how this would work with taxes and stuff since dh would be putting 12000 of unaccounted cash in his account. She would also be giving him her disability checks each month?

Not sure how to handle this?

 

[happygirl]

I have strange question

Dh's mother is a financial disaster. She is retired due to disablity. Her daughter is a drug addict who steals every dime she can from her

Mil asked dh, who is very good with dealing with finances to take her last bit of savings (12000) she just got in an expected windfall) and put it in his bank account and give her basically an allowance and pay her bills for her since she is constantly behind. It will also prevent his sister from stealing their moms money(last week she found her mothers bank book and took 2 grand)

I'm just not sure how this would work with taxes and stuff since dh would be putting 12000 of unaccounted cash in his account. She would also be giving him her disability checks each month?

Not sure how to handle this?

I wouldn't do that. Instead I would set her up a new account that the daughter can't get into and maybe have your hubby has a signer on the account.

 

[Tinkerdreams]

Why not open a joint account in your husband and MIL name (under her SS#. He would have access to it but not be responsible for any interest to be claimed on taxes.

 

[worm761]

She needs to give him power of attorney. I did this for my father when he was driving truck. We were both on the account but he is the main holder. I have a card and can pay his bills for him.

And your MIL and DH need to prosecute sister the next time she steals money from her mother. Stealing is stealing regardless of who she steals from.

 

[akcire]

I agree on the joint account. Not for the tax issue because today's interest $12000 is going to generate next to no income.


The reason I think it is critical is so his mother still has to be accountable. No surprises no blaming your husband. He will be functioning as her conservator. I do this for my FIL. All his bills go to a PO box. I confirm the amounts and write the checks, then I make FIL sign them. I can sign them I have POA but I want him to have some skin in the game. He also gets a cash allowance and has no cards.

 

[Sadie22]

A joint account is not the way to go. Instead, an account in MIL's name with her son as power of attorney (or term used in that state). The disability checks to be direct-deposited therein. Son to keep the checkbook. He can write and mail checks or he can set up electronic payments. His sister would have no access.

There are various reasons for not co-mingling MIL's funds with yours, including her qualifying for government benefits in the future. Keep what is hers in her name. As she ages and her health declines, this makes everything easier.

I did this for my mom. She had granted me durable general power of attorney to act for her, luckily before her stroke. Before her stroke, we had also gone to the bank together and set up all of her accounts with me as power of attorney. Many banks require their own power of attorney document be signed by the grantor of the power (mom). The checking acount was also payable on death to me. Some CDs were payable on death to my siblings and I. Having all these documents in place meant that I was able to sell her property when she was not able to return home, and disburse the funds to the care facility.

 

[wiigirl]

I wouldn't do that. Instead I would set her up a new account that the daughter can't get into and maybe have your hubby has a signer on the account.

 

[ktate82]

A joint account is not the way to go. Instead, an account in MIL's name with her son as power of attorney (or term used in that state). The disability checks to be direct-deposited therein. Son to keep the checkbook. He can write and mail checks or he can set up electronic payments. His sister would have no access.

There are various reasons for not co-mingling MIL's funds with yours, including her qualifying for government benefits in the future. Keep what is hers in her name. As she ages and her health declines, this makes everything easier.

I did this for my mom. She had granted me durable general power of attorney to act for her, luckily before her stroke. Before her stroke, we had also gone to the bank together and set up all of her accounts with me as power of attorney. Many banks require their own power of attorney document be signed by the grantor of the power (mom). The checking acount was also payable on death to me. Some CDs were payable on death to my siblings and I. Having all these documents in place meant that I was able to sell her property when she was not able to return home, and disburse the funds to the care facility.

I agree with this. Your DH should not be taking complete responsibility for this, but this would be a good solution. This allows for no issues in the future that he misappropriated funds, or “didn’t give it all back”. In situations with family and friends, you want to make it look the most honest way possible. This would create a paper trail that if any issues ever came up, your DH could show the bank documents from this account to show what was done with the money. I believe these accounts would also require your DH to sign off before anything was removed from the account.

The sister should also have charges filed against her. I know that can be hard (been there, done that with my family as well), but since your DMIL is on disability, it could be a harsher charge. Taking advantage of someone financially who is on disability usually carries a stronger charge than stealing from someone who is not. It’s an effort to protect those individuals who may be more vulnerable.

I hope all goes well.

 

[Brer Shay]

A joint account is not the way to go. Instead, an account in MIL's name with her son as power of attorney (or term used in that state). The disability checks to be direct-deposited therein. Son to keep the checkbook. He can write and mail checks or he can set up electronic payments. His sister would have no access.

There are various reasons for not co-mingling MIL's funds with yours, including her qualifying for government benefits in the future. Keep what is hers in her name. As she ages and her health declines, this makes everything easier.

I did this for my mom. She had granted me durable general power of attorney to act for her, luckily before her stroke. Before her stroke, we had also gone to the bank together and set up all of her accounts with me as power of attorney. Many banks require their own power of attorney document be signed by the grantor of the power (mom). The checking acount was also payable on death to me. Some CDs were payable on death to my siblings and I. Having all these documents in place meant that I was able to sell her property when she was not able to return home, and disburse the funds to the care facility.

This exactly. You do not want your funds co-mingled. I did something similar for a widow friend a few years ago. I also agree with PP that, where possible, your MIL should be the one to actually sign the checks. Potentially she can learn how to manage it herself as time goes by, depending on her age.

 

[PHXscuba]

When my husband's grandmother was alive, she had a checking account where she couldn't write a check over a certain amount (maybe $200?) without having it co-sgned by my father-in law. It was so some of her mooching grandchildren didn't steal her blind or talk her out of large sums of money. FIL had to do it after they called for bail money one too many times!

PHXscuba

 

[khaoskat]

Have her voluntarily give him guardianship of her estate. Then they create a guardianship account and all money goes into it. He can create a second account and put spending allowance in there. Then he can pay all bills out of the guardianship account and all her money goes into there.