My mother loaned by sister 70K several year ago. My mother now needs the money for a caregiver. My sister refuses to return the money and feels she does not need to return the funds since my mother changed her will without consulting this sibling. Mother has no legal documents that reflect the money was a loan. She trusted my sister would return the funds and my sister had previously agreed she would return the funds.
Needs some advice.
P.S. mom and I have terminated our relationship with this sibling.
Money itself isn't inherently evil, according to scripture. It's the power one allows it over oneself.
Sissy can continue to assert that this was a gift from mom to her and mom doesn’t have anything that shows otherwise. Mom (& you) can continue to assert it was a loan but there’s no documentation that shows this. It’s an impasse. Do your best to let it go.
HOWEVER, please pls pay attention to the date that this was done. This isn’t about getting Sissy to pay but more abt establishing the date of the gifting. Should mom in the future run out of $ and mom is at the point of being “at need” medically AND financially for care in a skilled nursing facility, she will file for LTC Medicaid. This is the Medicaid program that will pay for her care in a NH. It has a look back of 5 years for most States. Which means that if she gifted that 70K within the 5 years prior, she will get a transfer (of assets) penalty placed on her application and will be ineligible for period of time. It will be a # of days penalty period. This is very important because for most States to file the LTC Medicaid application the elder is already living in the NH and accruing a bill for each and every day there. It can take 3-6 months for applications processing. If gifting is found and a transfer penalty placed, it will mean that all those days will become a bill she or you or whomever the NH can saddle the bill onto will have to pay if she is to continue to be there. NH do not just let the bill slide, they will attempt to get it paid. Plus the transfer penalty will be in the State system, so should she try to go into another NH and onto LTC Medicaid, it will be quickly discovered. So really find out precisely when this happened and do whatever not to file for any LTC Medicaid (or it’s AL waiver program, if your State does those) till definitely past the lookback period.
also do check moms bank statements to see if there are any other “gifting” to others over $500. Make note of these as well.