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Thank you velvet. 

The topic came up today at lunch, when my dad asked where the money goes, since we spend X on food, X on cars, X on utility bills. She remained silent and tried to avoid the topic, as expected. So dad asked her to bring him receipts whenever she spends some money in order to keep track of it. He is entitled to freeze the account and remove her signature so that she won’t withdraw. However, I do not know where this could go.

Mind that dad and I hadn’t previously talked, meaning that maybe we both got to a “boiling point” where we now need to express ourselves. If you say it is the best way, I might speak with him alone and figure out the right approach. She may handle it better from her husband than her daughter, giving the shame and disappointment it brings along. 

I think this will have to be quick, as we are receiving inheritance money we are going to use to pay our debts, and I certainly do not wish to go back into debts because she could make the first move on this money.