Those provisions are normally designed to allow the holder of a power of attorney for people with a Taxable estate (now over $675,000) to make gifts of $10,000 per year to reduce the estate and thus the taxes that would have to be paid and/or to continue a pattern of giving to avoid hardship for others.
There is no need for the former if the estate is not a taxable one. And there is no need to start gifting if no one will be inconvenienced. But if everyoine wants to get their hands on Mom's money, and there is no issue of her running out any there being any Medicaid fraud ("Let's spend it now so the state pays") you can do it.
HOWEVER, the making of gifts is often challanged by various beneficiaries UNLESS gifts are made equally / according to who would take if Mom dies. If you gave one brother all the money every other person would get ZIP when Mom died, neither fair nor conducive to good family harmony.
This is something to discuss with the others. For example if there were 3 children who ultimately would inherit equally, then the holder of the power would often give $10,000 per child.
Here as one child seems precluded from making a gift to himself (and taking a fee would create taxable income -- often a stupid thing to do), what often happens is that the person holding the power talks to the others and says something like this -- How does this sound? We will all inherit Mom's money equally at the end. I could distribute some to you know. But as I can't give myself a gift, what I propose to do is give each of you $X and give $X to my wife. That will mean each of our families gets the same thing.
If that is okay sign this consent and I will make the gifts. Otherwise I would not think it is fair to make gifts at this time. Guess what they will all say?
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