Can I sign family gift checks for my father?

[slimpickens0]

My father gives monetary gifts to his children. I have a POA and my name on the bank account. For the past year, I handle his banking and finances.

[Opus 17 · Accepted solution]

That's up to banking rules and maybe the laws of your state.  If you are an owner on the account then you can probably sign checks even without the POA.

However, if you are considering making large gifts, and there is a chance your father will require (or is in) long term nursing care, you may want to consult with an Elder Care attorney.  In some cases, Medicaid can require that recipients of large gifts must pay for nursing care for their loved one before Medicaid coverage will kick in.  There are strategies to avoid this, but you would need expert advice.

[slimpickens0]

Thank you. Medicaid is not an issue in this case. For those with Medicaid covering long term care - your advise is very wise!

[ScruffyCurmudgeon]

While this is not an Income Tax question, still here is the answer:

Assuming that the Durable Power of Attorney (DPA) is what you have and it authorizes you to execute the receipt and disposition of income or checks, and given that you are a cosigner on the account (assuming it is the account on which the checks you mention are drawn), then yes.

Note that separate from Income Tax, there is a Federal Gift Tax applicable for any gift made in one year from one person to one other person and the proceeds, in 2018, exceeds $15,000.  This is a separate topic.

[slimpickens0]

Thank you. I thought so, but wanted to make sure since he is not deceased.

[Opus 17]

This reminds me -- in New York, the standard POA does not allow the grantee to make gifts of more than $500, unless the grantor has executed an additional gift rider.  So read your POA form carefully, and possibly consult an Elder law attorney.

[Opus 17]

By the way, when the grantor dies, the power of attorney becomes NULL and VOID.  You can't touch the grantor's money until you are appointed executor or administrator of the estate by the surrogates court (sometimes called probate court).  

That may not apply to a bank account where you are already co-owner, but it certainly applies to any other kind of transaction you might be considering.

[ScruffyCurmudgeon]

The key point is that you must review the document and determine thaqt it is a DPA with necessary powers provided.

[xmasbaby0]

So far there has been no mention of  the amount of the gift checks.  Were any of them for more than $15,000 to any one person?

[ScruffyCurmudgeon]

@xmasbaby0 see answer above - OP did not indicate in response