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Can you provide me a bit more information? Is this her loan or your loan? If your loan, are you the sole beneficiary of her estate? Thanks.
Thanks for following up. This is a bit problematic. Although you do have the legal authority to use your mom's money, as her power of attorney you have a fiduciary duty to your mother. This means that person has a duty to act in the highest good faith for the principal’s benefit. So, paying off your loan would be considered a conflict of interest and a breach of your fiduciary duty because it's for your benefit, not your mother's benefit. But, clearly since your mother has dementia, she's not going to be competent to raise this issue. The only party that would have any standing to contest your action would be your sister because she's an heir to 1/2 your mother's assets upon your mother's death. Therefore, for every dollar of your mother's money you use to pay off your loan, you're basically depriving your sister 50 cents. So, your sister could contest this were she so inclined unless you used a like amount of money for her benefit or you get her consent.
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