My mom is experienceing mild dementia although she has not been diagnosed with Alzheimer’s but she is showing signs. I found a large amount of money in her room. She is aware of having money in her room but can’t remember where she has hidden the money. We want to put the money in her bank account and tell her about it but have to deposit a large amount of cash. Should we tell her we found the money?
Large amounts of cash draw attention and you have enough going on without the potential of this triggering any type of investigation.
I did 10% of my check as cash on hand for years, when I moved I was really thankful that we never had a fire but I decided that it was a good idea to protect it from loss with a small safe after all the paperwork I had to file when I deposited a portion. We got robbed a couple of years later and got investigated, police thought we were drug pins or something, and I am sure that in part we were tagged because of that deposit.
I would cycle it since our money has been redesigned though.
My FIL would give his wife $100. dollar bills each birthday and Christmas. Unbeknownst to anyone, she hid them in books in their study. When the home burned, family found thousands of dollars in those books!
We told Dad we found the money because he was still trying to take action against the bank, but Mom didn't remember she even had an account.
The 5 of us kids put it in a safety deposit box for safe keeping for unexpected expenses of theirs down the road.
Why was she hiding the money?
Does she currently have any idea how much is there?
Are there siblings involved?
You need to balance keeping the money secure and Mum happy on one hand the issues with a large deposit at the bank and potential issues with siblings on the other hand.
If it were my parent, I would want the money in the bank. My Dad lost $300 last summer when he refused to put cash in his wallet. Instead he had it in an oversized envelope in his chest pocket. It fell out and was lost. It took two weeks to convince Dad that cash should be in his wallet.
I mention siblings, only because many here have issues with siblings draining the parents funds. It is best that the money be in a secure location. It is also best that it is in the parents bank account and properly accounted for.
Does Mum check her bank statements? I know my parents both do and would notice a big deposit.
Could you put most the money into her account, but leave some in the home and show Mum where it it?
If you could find it, anybody could.
Strongly suggest ways she could keep it safer.
Ask if she wants you to help her manage it, since she could not find it.
Ask her what it is for? Car repair, gardener, caregiver, housekeeper?
Help her.
If you deposit that money in the bank than you should know anything over 10,000 dollars the bank has to report it to the IRS. So, if you deposit 10,000 dollars or more your mom will have to pay taxes on it and somebody will have to explain where that money came from. Plus, if the IRS believe that the money was gain by illegally than the money is taken away and than you have to prove that the money was gain legal and how do you do that? You don't! I would really think twice about depositing it all in one hit at a bank!
You can deposit small amounts each months, but if mom is in early to mild dementia than I wouldn't. As long as she is able to have clear days it is her money. You can put the money in a safe deposit box than the money is safe and your mom will not get in trouble with the IRS. You will have to pay a small fee every month to the bank.
Just my 2 cents!