New Zealand Law
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As the holder of the power of attorney, your brother does have this power to describe one transaction is alone and the other as a gift. But the circumstances under which the loans were made would be important, and the issue may be whether your mother is able to say which sort of transaction this was. If she has advanced dementia and unable to understand what is happening, then I think it is likely that any court would be reluctant to force one sibling to pay a loan and the other receive a gift. In that circumstance the evidence from the siblings would be important, and they would need to be able to say whether these were intended to be gifts or loans. So while your brother can try to recover, they may have a defence if they can show that this was intended to be a gift