Here's the situation. I'll try to be brief, but let me know if more info is helpful.
I've got DPOA for my elderly mother with dementia and Parkinson's who's currently in a memory care facility. We recently sold a small property she had inherited and I need to figure out what to do with the proceeds. As far as I can tell, she technically doesn't need the cash as she receives social security and a state pension and, fortunately, has LTC insurance for the memory care facility. She's also had a particular financial advisor for a couple decades who, it appears, has more than 2/3 of her retirement in annuities.
As her POA tasked with acting in her best interests and according to her wishes, am I obligated to simply turn the proceeds from the sale over to the financial advisor given that's apparently been her preference for a good long time? Or can I more or less unilaterally decide to invest them in a more Boglehead-friendly way?
It's tricky because though I speak with her regularly, her short-term memory is poor and she's often confused and less coherent. She does have occasional moments of clarity, just depends on if I can catch her in one of those. If I ask her about what she wants to do with the proceeds, she might stick with what she considers tried and true - the financial advisor. On the other hand, if she told me to do whatever I thought best, do I simply take her at her word? She was never particularly financially savvy, if that matters, and given that she made me her DPOA when I was maybe 20, I'd like to think that she trusts me and values my feedback.
I'd like to get some feedback on the ethical dimensions of this decision. I'd obviously rather the money go into equity index and money market funds/CDs, but I'll do whatever I've got to do so I can honor my mother and sleep well at night.
I've got DPOA for my elderly mother with dementia and Parkinson's who's currently in a memory care facility. We recently sold a small property she had inherited and I need to figure out what to do with the proceeds. As far as I can tell, she technically doesn't need the cash as she receives social security and a state pension and, fortunately, has LTC insurance for the memory care facility. She's also had a particular financial advisor for a couple decades who, it appears, has more than 2/3 of her retirement in annuities.
As her POA tasked with acting in her best interests and according to her wishes, am I obligated to simply turn the proceeds from the sale over to the financial advisor given that's apparently been her preference for a good long time? Or can I more or less unilaterally decide to invest them in a more Boglehead-friendly way?
It's tricky because though I speak with her regularly, her short-term memory is poor and she's often confused and less coherent. She does have occasional moments of clarity, just depends on if I can catch her in one of those. If I ask her about what she wants to do with the proceeds, she might stick with what she considers tried and true - the financial advisor. On the other hand, if she told me to do whatever I thought best, do I simply take her at her word? She was never particularly financially savvy, if that matters, and given that she made me her DPOA when I was maybe 20, I'd like to think that she trusts me and values my feedback.
I'd like to get some feedback on the ethical dimensions of this decision. I'd obviously rather the money go into equity index and money market funds/CDs, but I'll do whatever I've got to do so I can honor my mother and sleep well at night.
Statistics: Posted by camroontheprune — Sat Sep 21, 2024 12:29 pm — Replies 13 — Views 476