In the case of a person claiming multiple regular transfers from his mother's account as 'gifts and inheritance', how does the ATO handle that where the mother has not been of sound mind to consciously 'gift' that money as power of attorney is in place and the person transferring the 'gifts' has power of attorney? If these 'gifts' took place during the time the mother was living with them, can that be legitimately claimed as a gift considering there was a benefit to the person 'gifting' the money? Is there a time limit on the time they get benefit from the time they gifted the money? Ie. 12 months? Can the person taking the 'gift' say the money was paid for reimbursement for living expenses. Is that then not a gift but reimbursement? And is tax payable on that reimbursement if paid into your account? How does the ATO consider money claimed as a gift spent on necessary renovations to the house to have the gifter live with them, verses gift of funds for unnecessary renovations that only the receiver of the gift benefits from. Also, what are the power of attorney rules for monitoring the expenditure of the mother's money? She passed away 2 years ago.
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Hello @Skippergirl,
A gift is usually a one off amount. When it is "gifted" multiple times in a short period of time then we may need you to provide evidence that it is a gift.
If the money wasn't a gift but reimbursement of services or living expenses then you would also need to keep records of the amounts. From the multiple questions you have asked I would suggest seeking a tax professionals assistance. Your use of the word gift doesn't align with the expectation of a gift in the tax system and you may need assistance putting together the relevant documents and explanations of your situation.
As for the limits of a power of attorney you will need to consult with a legal practitioner.
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Most of the questions need to be put to a lawyer because they raise the issue of misappropriation of funds.
Gifts or not, nothing here suggests payments would be taxable.
PoA expires on death.
Hello @Skippergirl,
A gift is usually a one off amount. When it is "gifted" multiple times in a short period of time then we may need you to provide evidence that it is a gift.
If the money wasn't a gift but reimbursement of services or living expenses then you would also need to keep records of the amounts. From the multiple questions you have asked I would suggest seeking a tax professionals assistance. Your use of the word gift doesn't align with the expectation of a gift in the tax system and you may need assistance putting together the relevant documents and explanations of your situation.
As for the limits of a power of attorney you will need to consult with a legal practitioner.
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