1. Case Analysis

• Baoma was admitted to the emergency room due to cancer and soon fell into a coma. She briefly regained consciousness at one point, and her children, Dabao, Erbao, and Xiaobao, thought that her condition had improved. Unexpectedly, a few days later, Baoma fell into a coma again and was later declared dead after resuscitation efforts failed.
• Baoma left an estate of NT$6 million. Each of her three children would be entitled to NT$2 million. During the period when Baoma was in a coma before her death, Dabao made frequent cash withdrawals totaling more than NT$2 million, claiming that the money was used to pay Baoma’s medical expenses and caregiver expenses. Later, Erbao and Xiaobao refused to share the NT$200,000 funeral expenses and only wanted to inherit the estate, so Dabao also withdrew money from Baoma’s bank deposits to pay the funeral expenses.
  
  

2. Can You Withdraw a Seriously Ill Family Member's Bank Deposits to Pay Medical Expenses?

• If Dabao did not obtain Baoma’s consent in advance, Dabao may face issues involving the offense of embezzlement and forgery of documents.
• Therefore, to reasonably withdraw a family member’s deposits, the following preparations should be made:
  • Obtain authorization from the family member: prepare a written authorization letter or preserve video evidence to prove that Dabao has the authority to handle Baoma’s medical matters.
  • For medical-related expenses, documents such as medical expense receipts or invoices, assistive device purchase records, diagnosis certificates, and caregiver expense details may be provided as proof that the withdrawn deposits were used for medical expenses. This helps avoid the National Taxation Bureau treating the withdrawn amount as part of the estate and requiring additional estate tax payment.

3. Withdrawals Made While a Family Member Is Seriously Ill Must Be Reported for Estate Tax If the Use of Funds Cannot Be Proven

• In practice, when a family member is seriously ill and may not have much time left, many people worry that estate tax will later be imposed and therefore rush to withdraw money from the bank, believing that doing so will prevent the National Taxation Bureau from knowing where the deposits went.
• However, if withdrawals are repeatedly made while the family member is seriously ill and unable to manage their own affairs, reasonable proof must be provided, such as medical receipts. If the use of the funds cannot be proven, the withdrawn amount will be included in the total estate, and estate tax must be paid accordingly.
• While Baoma was unconscious and in a coma, Dabao made frequent withdrawals totaling more than NT$2 million, claiming that the funds were used to pay Baoma’s medical expenses, caregiver expenses, and folk therapy. After the National Taxation Bureau verified the matter with the hospital, NT$500,000 in medical and caregiver expenses supported by receipts could be deducted. The remaining NT$1.5 million had to be included in the total estate by law. In addition to paying the estate tax, failure to report the amount may also result in penalties.