As POA paying for overnight care in sister's home, food, electric, water. Sister & bil have elderly uncle in their home. They ask for payment for companion care, overnight care, food, meds. I am POA and have been paying from uncle's checking account. Want everything to be as transparent as possible. Bil has not provided any invoices for companion and overnight care yet. Have indicated they want payment for increased utility use for uncle. How do we figure this? Am I responsible for tax return for 2015 for uncle? what docs should I have to justify care costs.
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First, it's recommended that your uncle have executed a contract with your sister and BIL specifying their responsibilities as well as what their payments will be. If he's not able to, as DPOA proxy, you should address that contracting documentation.
Since you're handling his finances, I don't think it's unreasonable to ask for invoices, or at least time sheets as well as receipts for what they've provided.
As to the increased utility costs, that's a bit more difficult to ascertain but there might be a few ways:
1. They can give you copies of utility bills for a few years prior to bringing your uncle into their home as well as copies for the period since he's moved in. The difference could be attributable to your uncle's presence. However, this isn't a really reliable method because it doesn't factor in the weather changes.
2. A better method is to have a separate meter for his room, but that only addresses that specific one area; it would, e.g., include extra water use. If he's on oxygen 24/7 that would be an additional cost.
I don't know of a really good and accurate way of measuring short of contacting the utilities and asking about separate meters as well as standard calculations on use of specific appliances, such as oxygen.
As to the 2015 tax return, is your uncle capable of doing this himself? If not and assuming you're handling his financial affairs pursuant to the DPOA, it would fall to you to prepare his return, although you would generally have the option of hiring a tax preparer to do it.
Personally, I think your sister and BIL should be providing you breakdowns on all the care they've provided, and definitely receipts for anything they've purchased, especially the meds.
There are 2 good threads on documenting these expenses, started by Ozark Olly.
https://www.agingcare.com/questions/system-for-documenting-care-given-182761.htm and
https://www.agingcare.com/questions/When-recording-care-given-do-you-time-everything-each-every-time-you-do-it-or-do-you-find-an-average-191175.htm
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