My grandma was contacted and is being investigated by adult services for financial abuse. Her bank is claiming me and my mother have misused her bank account. I have told them a portion of the money is what my grandmother loaned me for some custody legal fees for my daughter and I am paying her back with my tax return. They are still being pushy and continuing the investigation. They've gotten my grandma to revoke POA from my mother by getting her confused. She has early stage Alzheimer's but is still able to drive and care for herself everyday.
This is a family affair and your grandmother's money to do as she pleases, whether it's to loan you money or not. If she is at the early stages, if she understands and consents, then that is her right. It is not unusual for custody legal fees to come from family or friends.
It's always best to have some written contract. If there is not one, then it's between the two of you to agree on a payment plan if that was the understanding. Otherwise, the money more likely would be considered a gift. This is not a bad thing because you are her grandchild protecting your child.
My concern is that APS and police may seem like the authority which your grandmother may rely on, however she may need her lawyer to trust in this situation. If your grandmother's choice of poa is revoked, was this done fairly to her. Did this just require your mother or you to formalize agreements in her best interest.
"If You always do the right thing then you will never have anything to worry about".
I am my dad's guardian and I am accountable to the Court for every PENNY of his money - and they review his financials annually. It's stressful, keeping up with everything, but his money will go for what he needs. period. that's the way it should be - it's his money- not mine.
I'm also responding to your reply below... Thanks for jumping back in. Like I said, there are often gray areas regarding things we see as black-and-white. In our defense, we only know what we can infer from your posts. This seems like an awful experience for you, your mom, and your grandma, so I hope you've at least learned that getting things in writing up-front can save you a lot of headaches down the road.
One thing still confuses me, though. If your grandmother is unable to act on her own behalf and vouch for the withdrawal with her bank, how is she capable of revoking her POA? Can't have it both ways, I would think. I feel like I'm still missing something, so I definitely agree with mstrbill and suggest consulting a lawyer.
Depending on the level of Alzheimer's she is in, will also dictate whether or not anyone but her can have a POA changed. If activated, the POA was necessary, then a simple letter from her Doctor should help in resolving this issue. I believe that most POA documents state all the responsibilities and legal rights over the bank account. Read it - What you and your mother did just may be illegal. Get the #$$$ paid back as quickly as possible.
Good luck. POA's are never easy and need to be followed to the letter.
Anyone with POA for finances is required to keep careful and meticulous records. Taking a loan from someone whose finances you are handling, especially if that someone is even mildly impaired, is a real no-no, and if it is done for some reason it should be overseen by a lawyer with clear written contract.
Hope you will be able to work it out for what is best for everyone.
I hope you have very strong and well-documented evidence that your grandmother authorised the loan to you voluntarily and understands how and when it is to be repaid to her.
What other money is it alleged has been misused?
If grandma, in this case, is still deemed competent (I see that she passed the written and driving tests as well as being deemed competent enough to be talked into revoking the POA, under duress or not - they still deemed her competent to do this), grandma could direct her POA to gift money. There is nothing illegal in that. It is not a wise idea, esp if funds are limited, because if she ever needed Medicaid that would play against her.
My point is why would the bank and APS assume financial abuse off the bat? No idea how much money was involved and there seems to be more than just the granddaughter loan, but if grandma wants to gift money and tells POA to do it, she can. POA could override this if deemed unwise to proceed. If she does proceed, it is always best to CYA by getting something in writing, notarized (can't hurt to query the attorney who drew up the POA as well.)
My mother was giving each of us money (under the IRS limit for tax-free gifting) before the dementia started. When I realized she was having cognitive issues, I said NO to her doing it again (she was going to, and OB was eager to get his next 'installment'. I figured we needed to preserve whatever she had at that point, so that there would be funds to cover a facility when it was needed. This was the best idea and so far she has enough funds for years to come! BTW she's 96 now - hopefully the trust will outlast her!)
While typing all that, I recall that on taking over mom's finances, I wanted all the eggs in one basket, to make the task easier for me to manage. She had a second account at a local bank, for easier access if she needed cash. I was NOT on the account and never did business with them (so they didn't know me at all.) I took her and the DPOA document to the bank and was able to withdraw all the funds (by bank check and it wasn't pocket change!) and close the account. Mom just stood there rifling through her wallet and purse - she never said a word and wasn't asked anything. I then took her to the CU to deposit this into her primary account. I didn't take anything from it, but that first bank had no idea what I would be doing with the money and never asked. I never heard a word about it! Of course I could show it was deposited to her account and used for her benefit, but still.... The bank never said a word and no APS stuck their nose into the business! Funny (odd) too because I have read so many comments from people who complain that banks won't honor the POA documents.
If APS becomes involved it is easy for them to get a court order for disclosure of financial records. They can do it on an emergency basis, a matter of days. It is always best to cooperate with them. Not doing so only raises red flags.
When I was investigated it was actually a relief. I thought that finally the allegations and accusations from twisteds would finally stop. 😄😄 Of course they didn't oh those twisted minds were certain that the pros must be wrong.
Oh those dysfunctional families...