Is it fraud?

What is the name of your state? Kansas

A lady I know has been on disability for several years. About 2 years ago, she inherited almost a million dollars. I believe she paid the inheritance taxes. After she received the money she gave 100% of it to her church. Now, her pastor has the money invested and he gives her a monthly allowance. As payment for his "investment" services, she lets him take $1000 every sunday out of the money he has invested for her. She is still collecting disability payments from the state. And she doesn't claim the money she is getting from the church. I also wonder, lets say she kept the money in her name and invested it, wouldn't she have to pay taxes on the money that was made thru the investment? Isn't it illegal to give 100% of your income to a church? and does an inheritance count? she only did all this so she could keep getting disability payments and not have to pay any taxes. It just doesn't seem right to me. She is a millionaire and collecting disability from the state. But since the money is in the churches name she doesn't have to claim it.

It's legal to set up a qualified remainder trust where the donor gets the income during life & the church gets the remaining principle when the donor dies. However, I doubt they set things up this way.

I don't think so, ALL of the money is in the Churchs' name, and the church cuts her a check. Since she is in disability, they make it sound like she is a charity even tho ALL the money was hers in the 1st place. The church has it so its in churchs name but accts are separat of all others and every "sunday" the church takes money out of that account and puts it in a general acct. This lady told me way more than I ever wanted to know, but I think she was trying to brag cuz she knows she is getting away w/ something.