
In the last year, she has declined in memory. She's forgetting that she already ate, etc. Her leg is atrophying. I was told this is one of the Alzheimer's onset that connects to the brain and no therapy will help.
My concern is for her investments. Because of her decline, I will have to manage all finances, bills, and other support when needed. I am not sure if I should go ahead and take the investments out (not much, she is not rich) now and let her be taxed? That way I have funds ready for anything that would happen, or keep it in there until I need it to use for her? I am her caregiver and POA. I do not know what would be the best to do at this point. Anyone have any experience or advice?
I would think a tax CPA could help you. Unless, you plan on placing Aunt and will need Medicaid in the future. If so, make sure the lawyer in well versed in Medicaid law.
I will start looking for an elderly attorney.
When you ask about taking investments out and paying taxes, you'll need to specify if you are selling a stock in a brokerage account and paying capital gains, or if you are moving funds out of a tax deferred account like an IRA or 401k
Sometimes your goal is to to reduce risk money you need to spend soon. Sometimes you are more focused on minimizing overall taxes by managing tax brackets and major medical deductions over several years.
If there is a lot of money involved, seek professional advice from someone who will focus on how best to arrange withdrawals, not just try to sell you investments.
This is not true. It can take effect immediately or when the person becomes incapacitated. It should be noted on the POA itself.