Power of attorney

[donnygirl]

My parents had the 'fore sight' to sell their property and give all the money to my younger brother. He then put some of the money into his business and bought a small bungalow which he rented to them for a peppercorn rent. They lived in the bungalow for the rest of thier lives (18 years). When they passed away my brother sold it and made a large profit. This meant that if they had needed care my parents had no assets to speak of. There was a verbal agreement between my parents and younger brother that when they passed away and the bungalow was sold my brother would give some of the money to my sister, other brother and myself. Almost three years down the line that money has yet to materialise.

[StevePett]

Ouch! It could have been a cunning plan if the brother was trustworthy, didn't fall out with his wife or creditors or die without covering the matter in his Will!!

 

Our preferred method is to use a "Home Protection Plan" - put the whole property in Trust with (normally) all the children as Trustees so no one can do anything without the others agreement - and the parents have a lifetime right of residence (or moving) AND the children/ Trustees are expected to look after the parents first and foremost - for example, topping up care fees to keep parents in a decent care home where the local council would not pay the full fee.

 

It won't work at the last minute, or if it is clearly done in an attempt to force the council to pay care fees, but it has a major advantage in that it avoids the need for probate on

the house, as it is already out of the parents estate (except for Inheritance Tax, where it is still counted).

 

There are disadvantages, but for most people they are not crucial. It also works for single people as well as couples.

 

The "Protective Property Trust" is the one where the tenancy is severed (so you each own half of the home - in most cases, both of you own all of it so it is automatically inherited by the survivor). The first to die leaves their share in a Will Trust with the survivor granted a lifetime right to reside - or move with the Trustees agreement. The idea is that unless both of you end up in care at the same time, all or at least half of the home should be protected for your children/ grandchildren.

[arrodbo]

I initially asked the question of "What is Power of Attorney" I am grateful for all the many answers not only to my question but all areas surrounding the subject...Thanks for the enlightening points...

[Helibore]

Hello, my hubby and his sister have power of attorney over their mother. Hubbys relationship with his sister is not good and he recently discovered that she has been using her mothers money as her own creating a £2000 overdraft. He opened a letter from the bank who are now charging daily penalties. Mother-in law is quite frail and unaware of this,are they both liable to repay the money to the bank when she dies

[Jeffrey Shaw]

Is your mother-in-law still sufficiently in possession of her mental faculties? I ask because the Power ceases to operate if she loses capacity UNLESS it's a non-standard Power (e.g. Enduring Power of Attorney or Lasting Power of Attorney).

 

Your husband needs to get proper paid-for legal advice at once, in order to protect himself and his mother. No, I don't deal with that area of law sufficiently to advise in detail- so this post is wholly disinterested.

[StevePett]

What sort of Power of Attorney is it? Is it joint or joint and several?

 

As your husband appears to be a joint attorney, there is every possibility he may be called upon to repay the overdraft, as he will be jointly responsible for its use.

 

If it is an enduring or lasting power of attorney, call the number given here:

http://www.lpauk.com/your-lpa-questions/abuse-lpa-epa/. The Office of The Pubic Guardian would probably give you some general advice anyway.

 

If not, it is probably a Police matter, but it is not going to help family relationships much.

 

May be an idea to tell the bank that financial abuse is suspected.

 

Ideally, if you mother still has her marbles, the Power of Attorney (be it general, enduring or lasting) needs to be replaced.

 

If she has lost mental capacity, then a General Power of Attorney is no longer valid at all, and the other sorts require formal registration with the Office of the Public Guardian or they are being used illegally.

 

You can download the registration pack here: http://www.justice.gov.uk/downloads/global/forms/opg/forms-guidance-to-register-your-lpa.zip

 

Steve @ APWW.co.uk

[Helibore]

Many thanks for the replies we are going to book some time with a solicitor to help us through the times to come. I will post the outcome whenever that is, it may prove useful to someone in a similar position.

[gluedtopc]

I have enduring POA for an elderly relative who is now in a care home following a stroke. She was in good health when she did the POA but is now unable to manage her affairs. How do I register the POA-can I do it or is it best left to a solicitor?

[Matti]

What happens when two attorneys under an Enduring Power of Attorney can't agree?

[Anna Glypta]

 

But yeah, basically what you said, except after you die it is the person who has power over your estate.

 

No it isn't. Power of attorney ceases when the person dies. So there is no power whatsoever over a deceased estate.