Brother #1 is POA for his 61 yr old brother with Parkinson's who is now on Medicaid and in a nursing home with some dementia. Bro #2 has no house or car and the home gets his $2,000 a month. All the bills now go to Bro#1 who can't afford to pay them. Can he give up the POA and can bro #2 file bankruptcy since he isn't always of clear mind? Thanks for any help at all.
Brother number has dementia. He cannot now serve as POA for anyone. Brother number 1 should pay his OWN bills; he cannot/should not pay the bills of brother number 2.
You need an elder law attorney to help you comb all this out and decide options to proceed.
I would do a letter that states Brother #2 is in a nursing home on Medicaid and there is no money for any bills to be paid. Then send a copy to every creditor that sends a bill. (This might be worth seeing an attorney to have them write it. Then you just make copies and send out. An electronic copy would allow it to be customized to each creditor.)
It would be good for your Brother #1 to Google state statutes for POA for the state it is issued and being used in. This will help him understand what it means being POA and what his actual responsibilities are.
Read the POA, some have expiration dates and others require someone to put a resignation in writing. NO, POAs are not forever and just because someone named you doesn't mean you need to accept. Your brother can resign. I would read the state statutes before doing this though
The POA has no responsibility for paying with their own funds unless they signed accepting that responsibility on the specific contract in question. So don’t do that.
One can resign as POA following the appropriate procedure for one’s jurisdiction, usually involving timely notification of bank, home, and anyone else who accepted the use of the POA document. However, that means giving up any input on financial matters, like moving to another place if conditions deteriorate at this one.
Have a look at this link and consider if it would be useful to tell creditors he no longer needs services from to stop contacting him (his agent).
https://www.nolo.com/legal-encyclopedia/should-i-tell-debt-collector-stop-contacting-me.html
POA stops at death. There is no reason for brother to give it up. Its a tool. It gives #1 the authority to talk to doctors and Nurses concerning #2s care. He can also make decisions for brother if he is not competent to do so.
Your brother's job as POA is to use his invalid brother's money to pay the invalid brother's bills. Under no circumstances does he use his own funds.
What kind of bills are you talking about?
Are you talking about medical bills? If so, Medicaid pays for that.
No to bankruptcy. Please provide more details about what kind of bills he's still receiving.