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couple of things I’d like to add….. as the house is till in moms name it is her responsibility to pay whatever costs it has. Like taxes, insurance, maintenance. If there is a HOA check to see if how it reads for “tenants” as Sissy & that renter may be considered a tenant and so there has to be a rental agreement in accordance with HOA. We have a condo by us that has lots of older retirees. When Covid hit some had their kids and grandkids move in. Issue was technically they were tenants as legally not owner and tenants have to be on a 6 month minimum rental agreement & renters have to sign off acknowledgment on rules and regulations of the HOA (strict on parking and security codes stuff and use of pool, workout room). HOA can & did fine an owner for beyond the pale behavior by the grandkids of 1 unit to the point that they put it up for sale. HOA can be ruthless, Your mom as the owner and you as her POA will get stuck with any fall out if this tenant is a problem.
in addition to the letter to Sissy, the atty can also send one to the tenant along with a rental agreement and a requirement to have rent paid by Venmo or via ACH. Yeah it’s a buttrash to deal with all this, but imo you have to, HAVE TO, nip this in the bud as I bet Sissy will continue to be doing things that pose issues. Like what’s next…… Sissy goes and gets new appliances for the condo & its moms debt? Hires someone to erstwhile paint? and if Sissy doesn’t pay they can place a workmans lien on the condo. If Sissy has a pattern of being a moocher, ya gotta nip this in the bud now. And that means atty send her a certified w return request card letter and rental contract to the tenant as well.
Hopefully, you caught this in time and have directed the renter to start putting the money back into the original acct. I assume u handle the condo, if so why did the renter not call you and question what sister told them? You are going to need to file a complaint of theft with the police, mainly because if Medicaid is ever needed, sister receiving the money will look like gifting and that will cause penalties. Whether you want to press charges on ur sister is up to you.
Your sister needs to realize the Condo is not hers until Mom passes. A lot could happen between then and now. As POA, you probably have the legal right to sell it to help pay for Moms care. Which is what you should do if she remains in AL longer than the money she has on hand holds out.
I would talk to a lawyer before pressing charges. He maybe able to write a letter explaining what she did was wrong and as such, the money needed for her Moms care needs to be paid back. (Maybe saying if not paid back, charges may need to be filed) He also needs to explain while Mom is living her assets are hers and only revert to sister upon Moms death after Probate has been closed. If found that Moms debt outweighs the money on hand, the condo may need to be sold to cover debts.
Lets say Mom needs to go on Medicaid. The house is an exempt asset. It becomes an asset, that Medicaid can recover what was spent on Mom, when she passes. So now a lien is placed on the house by Medicaid. Since no one is living in the house that did Caregiving or is a disabled child, the house needs to be sold to satisfy that lien. Or since sister inherits it, she could pay the lien to keep the house. When a parent needs care and the State steps in to pay for that care, Wills sort of go down the drain.
You need to look at this whole thing as Moms POA not that you two are sister's. Your sister had to know what she was doing was wrong. Bet she can justify taking the money. Had an Aunt living with her mother that forged checks signing her Mom's name. It got caught when the POA got the monthly statement. Her justification was she was there caring for her Mom. She was there because her and her 3 kids had no other place to go. You are not just Moms daughter you are her respresentative assigned to keep her money safe.