Mortgage Payment

I know someone that is in a nursing home, still has a mortgage on property. Someone else has Power of Attorney for her personal business. This person (the POA), wants to write "gift" checks to family members. Shouldn't the first priority be to pay off the balance of the mortgage on her property before writing checks out to family members? I feel this should be paid while she has the money available so it is taken care of before she dies and her money has been used for expenses (or gifts to family members). Please advise. Thank you.

There are very strict laws, with criminal penalties, designed to prevent people from giving their property away if the result is that the Government will be expected to pay the costs of nursing home or other care, rather than the person himself from his or her assets.

If this is not a danger in this situation, then there would be no illegality in making the gifts, but of course, if the person dies and the estate does not have enough to pay the mortgage, then either the person who inherits the property must make the payments, or the property will be a foreclosure on the property.