In regard to being a power of attorney (PoA), how far back do you have to keep documentation for accounting purposes?
I have been PoA for my mother since 2004 and had to place her in a nursing home due to her dementia 13 months ago. She is now 90 and has enough assets to pay for her care with her private funds for at least a few more years. Because of the the 5-year Medicaid look-back period, I have been discarding all records that go beyond 5 years, and have been doing so on a monthly basis. For example, this month (July 2016) I discarded all records dated June, 2011. Do I need to hold onto everything, no matter how old it is, just in case of an audit (for example, at the request of my siblings) or is 5 years of record keeping sufficient?
Add your voice! Click below to answer. ThriftyFun is powered by your wisdom!
Your financial responsibility may differ by state. However, I would keep absolutely everything-receipts, bank records, medical, legal and financial decisions etc. Yes, keeping all records is a pain, however, it is better to be able to prove all actions down the line than trying to reconstruct old papers, etc., for evidence!
I believe that most responders would tell you to keep all records "forever" but that may not always be a good idea. Only an experienced attorney can tell you for sure. Remember, your siblings will have access to your records and can request an answer to every little "expense" on your records. This can get very "tedious" when it comes to records 10 years old. I would think an attorney could give you the best answer.
Where siblings are involved, anything could happen after your mother passes away as many of us have already experienced.
It is sad, but where money is involved many people "change" into someone we never knew existed.
I believe you should request a consultation with an attorney who is familiar with POA's so you will have some idea as to what to expect when the time comes to give an "accounting".
It is possible that any attorney fees would be counted as an expense from your mother's assets.
You may be in for a "rough" ride with your siblings so brace yourself with knowledge and facts before it happens.
Add your voice! Click below to answer. ThriftyFun is powered by your wisdom!
