My parents are entering nursing care and assisted living (one each) They will be separated. My sister is the sole executor of their estate and has durable power of attorney and medical power of attorney. By way of the things they've said within the last 2 weeks. I think the are planning on taking their assets without permission. My brother said in front of me and my husband that Dad had told him he could have a valuable collection. Yet when we asked Dad about this he said he had not given his permission. My sister approached me in regard to my parents home and asked if I thought it would be okay to rent it to our brother and sister. The sale of that home is necessary to pay for nursing care and assisted living. All three of my siblings have no savings of their own, and one is behind in the mortgage. Since i don't have power of attorney what can I do to stop my siblings from taking their assets? We have only limited access to their home and even less access to their financial records.
*** article starts ***
What are an Agent’s obligations to a Principal?
The agent is obligated to act in the best interests of the principal. An agent is a fiduciary, with strict standards of honesty and loyalty to the principal. An agent must safeguard the principal’s property, and keep it separate from the agent’s personal property. Money should be kept in a separate bank account for the benefit of the principal, and agents must also keep accurate financial records of their activities, and provide complete and periodic accountings for all money and property coming into their possession. Instruct your agent to provide accurate records of all transactions completed for you, and to give you periodic accountings. You can also direct your agent to provide an accounting to a third party (e.g., a member of your family or trusted friend) in the event you are unable to review the accounting yourself.
*** article ends ***
Now then. Unfortunately, the advice about including instructions for the person you give POA to report periodically to some other, impartial observer - although it is tremendously good advice - doesn't seem to be something people think about or are told about until it's too late. Like now, for your parents, for example.
But all the same. Your sister was given her authority by your parents; and her having at least approached you to discuss the house shows that she would in principle like to be doing this job right. So give her that information. It should be clear enough to her that she has no right at all to disburse your parents' property to their children, or to allow them to help themselves to it, or to use your parents' assets in any way that does not serve their best interests.
Looking just at the home: if your brother and sister pay a fair market rent, at a rate which will provide your parents with a reliable and sufficient income; and if the property is likely to continue to appreciate in value; and if your parents don't yet need the capital; then there could be an argument for keeping the house to sell later, and allowing your brother and sister to live in it meanwhile, keep it in good repair, and pay rent. Nothing about that arrangement is wrong, because it would do your parents no harm and might actually improve their financial situation.
But if the POA sister is coming under pressure from siblings who are calling her meanie and expecting early legacies, then you need to help her stand firm and live up to the ethical standards she accepted when she accepted the POA. It's not a popularity contest. Do you reckon she's equal to the task?
Plus if one of the parents, or both, need to apply for Medicaid, Medicaid will do a 5 year financial lookback, and anything like the collection or money would be considered "gifts" and that will cause a huge stumbling block for Medicaid. Of course, your siblings probably are not familiar with this, rarely anyone is until it is time to apply for Medicaid for an elder.
If I found myself in this situation, I would get the advice of an Elder Law Attorney. If your parents are still of clear mind enough to understand a Power of Attorney, see if they can change the Power of Attorney to someone else, they can even have the Attorney be their POA, but there would be expenses taken out of the estate.