My widowed sister living in Canada is in moderate stage. She does not have a will and is not intending to write one and we don’t know how to navigate the situation. We don’t want kids to lose the money or fight for the money after her death.
If one of the kids gets the POA from her now, will they be able to decide on her money after her death as to what goes to whom?
She has assigned beneficiaries to her money in the bank. So I guess the beneficiary can split the money among the kids after her death.
There is also a house in her name, but in India. Will the person with POA be able to decide on who the house goes to?
Expectations of inheritances cause all sorts of problems within families and drive them to make poor decisions regarding financial management of the elder's care and affairs. It would be best for your sister's family to have NO expectations of an inheritance (aside from the beneficiaries of the bank accounts). Then, if anyone does receive anything after that, it will be a pleasant surprise to them.
At this point with moderate Dementia, she may not be able to assign a POA or make a Will because she needs to be able to make informed decisions and understand what she is signing. With a beneficiary, if she has only assigned one to each acct, that person is not obligated to share it with anyone. Its their money to do as they please. Same with insurance policies. Beneficiaries do not have to share, they also don't have to pay for funeral expenses unless targeted for that reason.
The house in India, I agree that it will cause problems but...that really is not your problem. Sorry if I seem a little rude. If there are children, then at her passing, they will have to deal with it. Because Mom has no POA or Will they need to know how the laws where she lives works so they have no surprises. If you sister is suffering from Dementia she probably eventually need to be placed in an Assisted Living or Long-term care facility. If that happens, then her money will be used for her care so there maybe none left when she passes. The only thing that can be done now is for someone to become her guardian and it should be one of her children. Preferably the child that is willing to be the Caregiver. If you r the Caregiver, than maybe u. But then again, that stops at death. Not having a Will is your problem.
As for a house in India, well, I wouldn't want to touch that with a ten-foot-pole. Dealing with overseas real estate could be a nightmare.
First of all it is likely way too late for a POA to be done. They can be done by competent people only who understand exactly what they are doing and the document itself, as drawn gives powers to the person according to the wishes of the person appointing them POA. Then there are Fiduciary LEGAL duties of the POA to operate within the law, to do nothing that could enrich themselves, to keep meticulous records of every penny in and every penny out. Because it is likely too late for POA you are left with guardianship. That is a more complicated legal process that must go through the court. The guardian would act in place of a POA. The guardian would decide all things including placement. Both guardianship rights and duties and POA rights and duties end with the death of the person.
IF accounts have a POD listed (pay on death) then that account goes to the person designated as POD. BUT if they distribute that money to other people that is purely their own business but WOULD HAVE, at least here, tax repercussions to themselves. If there is no will in our country the person is considered to have died intestate, and their estate would go to the court where a probate would be open and an executor assigned to divide the state according to the laws of that state. The executor would pay all bills owing to the estate, and then do the division according to the laws of the state, by percentages dictated by law. The home in India would become a part of the estate. If no one in the family is capable of handling this clearly complicated estate the state would appoint an executor who would be paid, a fiduciary, some percentage of the state to manage it and to distribute it.
It is all very complicated, and as I said, what I have told you applies in this country. I can't speak for your own. So you need expert advice.
Sounds like perhaps her family might want to talk to an elder law attorney to see what if any their options are at this point. Best wishes.
i wish her well, a long and happy life.