[WSBAPT] POA question

[Jane Bitz]

Hi Sara:

Legally I believe she can charge room & board to her step-father. No matter where he would be living, he would have a basic housing cost. The practical considerations when he is unable to bargain with her for a fair amount for room & board and may not actually be able to express his wishes to live with her family, are many.


1.       There should be a written care contract spelling out the rate of payment and exactly what is being covered by the payment (room size, meal prep, cleaning, laundry, Dr. visits, etc.) This is mandatory if there is a possibility that he might need Medicaid coverage for his care in the future.

2.       The payments should be reported on her taxes as rental income.

3.       If there are other siblings and step-siblings, they should be included in the discussion of how much Dad will be paying for his room & board. This is a practical consideration so that they don’t see the situation as step-sister keeping Dad so that she can “get all his money”. If everyone knows that she is being paid and how much, it will avoid unnecessary drama and misunderstanding (or perhaps trigger the drama now before the first check is written.) If Dad is capable of understanding, then he should be part of the discussion so that the other family members can see and hear for themselves that Dad wants to live there and agrees to “pay his way.”



Good luck!

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Sarah Jael Dion
Sent: Wednesday, April 6, 2016 2:32 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] POA question

Hello-

Looking for practical, as well as legal, input on a situation.

Acquaintance is POA for her incompetent stepfather. Acquaintance is moving into a larger home, which has extra room, and would like to move her stepfather in so he can be in closer contact with the family. She plans to charge him rent, but is nervous about doing so, because she would be writing the rent checks to herself.

It seems to me that this must come up routinely- although it hasn’t with any of my clients. Can a family member who is the agent ethically charge rent to the person for whom she is the fiduciary? If so, what precautions are best taken?

I’d appreciate any thoughts!

Sarah Jael Dion

Dion Law PLLC
206-550-4005
sarah at dionlaw.com<mailto:sarah at dionlaw.com>
dionlaw.com<http://dionlaw.com>

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