Does a POA have to be accountable to anyone with how they manage and use the aged parents money?

There is a good free app also available online called Expensify. I have several accounts set up on there and I track mileage, take images of receipts and note what they are for and more for my medical and business. As Attorney in Fact for my mom and sister, I only pay bills and access the funds from the trust account at my sister's nursing home. I provide receipts to them. However, if you are a Rep Payee for someone, you will want to photo/scan your receipts and keep them safe so you can fill out the report at the end of the year. Electronic records are easier to manage once you have a system and back-ups in place.

Riverowls, just a note re what you said about receipts..when you receive a receipt for something you purchase for someone else, just use a copier and make a copy of it. The ink on the receipts do fade over time and one day you'll pick up a receipt and not be able to read it at all but if you make a copy of it and staple the original receipt to the copy to it, you'll be able to read it just fine. It won't be necessary to spend $140 on a special printer or whatever. Just write on the copy what you bought and the reason why so you can record it later.

It depends on what the POA says in the paperwork. Most POA's need to account for whatever they spend the money for and to whom they pay it out to and the reason for the expense. See some of the comments and the true colors of people come out when it comes to money. Someone, somewhere, will want to know exactly what, where, when, why and to whom the money is going so be sure to keep good records and you'll be fine. If there is any question as to whether you need to pay for something, ask the family lawyer or petition a judge who handled the case if there was one as to the legalities of the expense. If there isn't one, find an elder care attorney to ask because they may just be needed to represent you if someone else doesn't agree with you. Keep meticulous records and you'll be ok.

As far as keeping recipts I pay for all my Dads stuff with a debit card so there is a bank record. But in dealing with taxes when my husband & I traveled for work we lernt the hard way that throwing recipts in a box & letting them sit there the ink on recipts can and will fad off. Just from rubbing against each other etc. If you keep recipts maybe conside getting 1 of them Neat Orginizers I think they were called. I think they were $140 but you can scan recipts or recipies anything like that & keep a copy in a online folder something like that. I always wanted one but never got one & we quit traveling right after they came out of course lol.

I am also the executor of my friend's estate and know how any money left over would be distributed. My friend is physically healthy and receiving good care in his memory care place, so he may live a long time. I think I have a good idea how to manage all this for some time as long as my health remains good so that I can. Life will be easier once his condo is fixed up a little and sold. Other friends are willing to pitch in and help with that, too, so I don't have to do every little thing alone. I have two back-up POAs as well and try to keep everything easy to understand in case they have to step in. I have been amazed at the help that just happens to show up when I need it and feel very grateful for this. So far his brother in Japan and relatives in New York are just happy I am here to help my friend, since they cannot. It is a relief not to have family members trying to blindside me or make accusations. There are no family emotions coming at me for any reason other than of gratitude. At some $7600 a month for his care, there probably won't be an estate left to argue over when he passes. No one has given me any indication of having their hand out and hoping for money. We are in Minnesota, so the distances to any relatives is pretty great and little communication is taking place any more. I send an occasional email and photos to his brother in Japan and nephew in New York to pass on to my friend's sister there, but seldom hear anything back.
Best of luck to those dealing with the complicated family issues!

Johnny, my situation is a little different from yours in that I have been caring for my mom and dad going on 10 years now. I have been meticulous in saving receipts and logging every thing! I never took cash from my parents so that wasnt an issue for me. My issue is that I have 2 sisters who blindsided me with a lawsuit lying to their lawyers telling them that I was stealing from my parents and had been "making" them give me money so that I could live on them instead of working (I retired from 31 years of teaching to care for my parents...with a pension) anyway, it didnt matter that it was all lies...My father has passed and my mother has alzheimers, so I was required to hire lawyers and prove my innocence...I am telling you all of this so that you will be wary of not crossing EVERY t and dotting EVERY i!!!

My sister had POA on my bank account when I was seriously injured some five years ago. She was using my card for her own personal use at times, and I should have called the police, gotten APS after her, that sort of thing. I didn't do it because when the holidays rolled around I would have had no place to go as I am not on speaking terms with my cousins

All these comments are right on the money. DO keep good records and update them daily just in case. Midkid58, your BIL sounds like a real jerk. It's ok for him to pocket the 3% but not ok for your expenses to be paid. I was POA for my late husband when he passed and had to sell his property, all assets and take care of the bank statement as well as file final tax returns for him. I also had one of his children by a first marriage call and ask me why they only received $xxx dollars. His snide comment was I bet your daughter got a lot more. My answer was it was none of his business whether my daughter got more or less but if he wanted an accounting of all expenses, contact the attorney because I turned in a final audit of all expenses with bank statements to prove every expenditure. Even though I was entitled to monies for the work, gas, etc. I took none of it for myself because there just wasn't enough left after paying his taxes and dividing the rest by his kids. He actually went up to the attorney's office to see what I had spent and got copies of the expenses. Apparently, his mother had told him the reason he didn't get much was because I wanted it all for my daughter which was not true. Like windyridge said, you never who will creep out of the woodwork once a person passes. Do your due diligence and have an answer to all questions because you might find yourself in court having to answer to a judge and you want to be right.

As guardian POA etc. for my aunt I get receipts for everything and keep complete records. Every two years an accounting is turned into the state of Ohio under the guardianship rules. I never want to give any impression that anything is amiss. I also had a "cousin in law" that was a big pain in the ___. I finally told him to be sure to keep his day job because there isn't going to be any inheritance that all the money will be spent on the aunt. I gave him an education on the cost of living for the elderly. That was the last I heard from him👏😊

I agree 100%. Keep meticulous records!!!!! My hubby was POA of his dad's affairs and for some reason his sister's husband was the one most interested in the financial dealings. Hubby had no obligation to show this BIL ANYTHING, but he did, for the sake of family peace. I was "allowed" to upgrade dad's condo to get top dollar for it at sale, but BIL only allowed me $5000 to do it with and wouldn't agree to pay me for my time. The BIL listed and sold the condo (in one day!) and happily pocketed his 3% commission. It's taken me some years to look at this BIL and not think "thief". But I understood that they really needed the money that came from dad's estate, so I shut my mouth and never said a word. And boy, did I keep every single receipt for the upgrade?? You betcha. Accounted for every penny I spent. That's the only safe way--and you'll sleep better at night for having done the right thing.

Johnny, I've been POA for my folks for about 3 years, have the checkbook, deal with investments, pay the bills, etc. They have several grandchildren that I don't expect to ever have any problems with but you never know.

So keep copius records and copies and receipts for bills and payments. Ninety percent of my payments are made on a checking account where I'm a co signer. i keep the checkbook register detailed and up to date. I never want to be in a position where anyone could accuse me of using my parents funds for my personal use. Ya never know who might creep out if the wood work someday.

Johnny, some facilities allow a "trust fund" (not sure if that is the right term) to be set up for each resident so they have access to cash without having to keep too much in their possession. If that is available for your friend then any deposits you make to it would be recorded, so you would have a paper trail.

I am POA for a long-time friend of mine who has no children or close relatives. I take care with his money and assets to be sure none of it comes to me--"just in case." I don't know to whom I may be accountable down the road, if anyone, and I am not doing this for financial gain, only out of friendship. When his bills come, I pay them by check so there is a paper trail showing where the money went. I do not reimburse myself for gas/mileage costs on my travels to and from his AL facility and condo either. I have not figured out how to prove when I give him cash that he got it. He wants to "treat" me with a book when we go to a book store and when I sold his record albums, I just gave him the cash. I probably should have a ledger where I write this down, along with the receipt for any cash received--a "duh" moment when I think about it now. Any other suggestions from someone doing this?

When dealing with someone else's finances as a POA, the POA should always keep records of where the money goes.

There is no authority that a POA has to report to but if Medicaid is involved, the will is probated or a number of other issues that come up the poa better be able to make a full,accounting as to how money was spent.

The POA is to Use funds ONLY for the direct care and affairs of the elder. If misuse is suspected they can be reported to the police, APS or similar authorites.