My brother had got power of attorney!!

rose28454

You may have read some of my other threads and will see what a mess mine and my family's life is. My parents are in their eighties and still have a large mortgage as they were persuaded to invest in a couple of business's that went wrong by my brother.
Where shall I start? Firstly they invested 40 grand from a 2nd mortgage in my oldest brother's business about 15 years ago ( when my Dad was 71) and although their solicitor advised against it they still went ahead ( my father is Italian and family and eldest son are all important!!) The business went bust a few years later and all my brothers and sisters ( except me as we could not afford to contribute) were persuaded to pay money each month to help with the mortgage. About 2 years ago one of my brothers and one sister realised that the mortgage was part interest only and my oldest brother had re-negotiated the original mortgage ( which would now be finished) so that it would run for 50 years from my Dad's 70 birthday ( he is now 88!!_) meaning it still has 34 years to run. With my parents written permission I looked into changing the mortgage so that it would start being paid off even though it meant everyonbe would have to pay more. I presented the figures to them but my brother persuaded them ( without everyone else's knowledge) to just take another 2 year interest only fix. When it came for renewal last November I tried again but although the Building Society had written authority to sspeak to me when I called they said they could no longer speak to me. I wondered why and he set up another deal for about a million years we think.
My parents have been abroad to my oldest sister's for 2 weeks while my oldest brother fits a new kitchen for them ( another story!!- and everyone is expected to pay for it). The house is a right mess and the kitchen should be finished tommorow night and they are back tommorow evening. My youngest sister and I are going to try to get it tidy for them so I went today to start but as the water is still off and I could not find the hoover ( apparently my oldest brother borrowed it a few weeks ago!!) I could not do much so I just tidy up some papers on the hall table. ANd what did I find!!! A LETTER ( OPENED) DATED SEPTEMBER 2007 SAYING MY PARENTS HAD GIVEN POWER OF ATTORNEY TO SOMEONE!!
I got really upset and stupidly phoned them to ask about it and it appears my oldest brother is the appointee. Quelle surprise!! I am afraid I got really upset as my oldest brother has a bad track record with money and has already had a lot off of them and left them with this mortgage and I am the person who cares for them on a day to day basis ( I sometimes have to visit 2-3 times a day). I spoke to my younger brother and sister who were shocked and my sister with whom they are staying, who denied all knowledge but is apparently the other appointee- but is also my oldest brother's puppet.
Now you may think I am thinking of myself but I dont think they realise what he can do with this power. He has a property developing business and we know he is stretched for cash and with the recession coming we had anticipated he might lean on them again. My youngest brother spoke calmly to Mum and said he doesnt think they realise what power he now might have, The other thing is they went to the solicitor in September 2007 just before the Power of Attorney rules got much stricter and we dont think this is a concidence.
Now I know this all sounds like sour grapes but we have all tried for 3 years or so to get them to think about buying a bungalow as my Mum is unsteady on her feet but they dont want to move. But my brother is developing some new flats and my Aunt called me a few months ago to say my parents had told her my brother was trying to persuade them to move into one.
I am trying to look at this from their perspective and I realise he is their son but as my youngest brother told them we are all adults and we all have their welfare at heart. Can anyone advise what we can do. I have spent the evening crying as it makes me feel sad and lonely. You will see from my other threads I am in severe debt and I know I could ask my parents for money but as I cant pay it back I know morally I cant.

ailuro2

Rose, you know I've followed your other thread, I know what a tough year it's been for you - you've grown immeasureably though , and are in a much better place to deal with this info than you would have been a while back.

Stop and take a step back. Think about it as if it was someone else...

The parents have given the oldest son power of attorney, in their way of doing things the oldest son is always going to be the most 'important' in the family line, so this makes sense for them.

The oldest son has no sense with money, but is it money that's the crux of the matter - is he wasting everyone's inheritance?? If he is, then the other kids should all ask the parents for a loan, knowing the parents will give it to them. This will keep some of the money safe from the oldest son. The other siblings could get together and agree this as a plan.


If the daughter is running round to help parents out two or three times a day, then why not employ her to work for them a few hours every day? This means no-one is doing more volunteering than anyone else and other siblings could do a few hours if they wanted for the same hourly rate. If this isn't a suitable plan then empoy an outside agency, it is not fair for one to do all the work.

The oldest son is fitting a kitchen for them this week - is he getting paid for that? Or does he regularly do stuff like this to help them out?

At the end of the day the daughter looked at mail that wasn't addressed to her....is that right either??

Take it easy, Rose, try not to worry about things that haven't actually happened yet. Good Luck, try not to think about it too much!

rose28454

ailuro2 wrote: »

Rose, you know I've followed your other thread, I know what a tough year it's been for you - you've grown immeasureably though , and are in a much better place to deal with this info than you would have been a while back.

Stop and take a step back. Think about it as if it was someone else...

The parents have given the oldest son power of attorney, in their way of doing things the oldest son is always going to be the most 'important' in the family line, so this makes sense for them.

The oldest son has no sense with money, but is it money that's the crux of the matter - is he wasting everyone's inheritance?? If he is, then the other kids should all ask the parents for a loan, knowing the parents will give it to them. This will keep some of the money safe from the oldest son. The other siblings could get together and agree this as a plan.


If the daughter is running round to help parents out two or three times a day, then why not employ her to work for them a few hours every day? This means no-one is doing more volunteering than anyone else and other siblings could do a few hours if they wanted for the same hourly rate. If this isn't a suitable plan then empoy an outside agency, it is not fair for one to do all the work.

The oldest son is fitting a kitchen for them this week - is he getting paid for that? Or does he regularly do stuff like this to help them out?

At the end of the day the daughter looked at mail that wasn't addressed to her....is that right either??

Take it easy, Rose, try not to worry about things that haven't actually happened yet. Good Luck, try not to think about it too much!

You make some good points especially about having a loan and the paying for hrlping. I will discuss it with the others. Regarding reading the letter I was actually looking for a letter she was waiting for which she had asked me to look for. In one way I wish I had not read but in another maybe we can help to avert a catastrophe!! Thanks PS He is not actually putting in kitchen rather employing people to do it and others have to pay!!

SandC

Sorry but I know lending was somewhat lax two years ago but there is no way on earth that a 70 year old can get a 50 year mortgage! As far as I am aware a 70 year old would struggle to get any mortgage at all, even two years ago at the height of lending.

Are you sure of your facts?

pinkshoes

I was also confused about the mortgage length, as obviously an 88 year old would struggle to remortgage given their life expectancy! Are you sure the house is still in their name, or has your brother put it in his name? As power of attorney I think he could do that! You should check the deeds... Is there some sort of insurance that would pay off the mortgage on their death? Because if there is, then I don't understand how they would have been able to remortgage for an 88 year old and still keep this insurance - it would be too high risk for ANY insurance company!! Again, it implies that the house is in a younger person's name...

rose28454

pinkshoes wrote: »

I was also confused about the mortgage length, as obviously an 88 year old would struggle to remortgage given their life expectancy! Are you sure the house is still in their name, or has your brother put it in his name? As power of attorney I think he could do that! You should check the deeds... Is there some sort of insurance that would pay off the mortgage on their death? Because if there is, then I don't understand how they would have been able to remortgage for an 88 year old and still keep this insurance - it would be too high risk for ANY insurance company!! Again, it implies that the house is in a younger person's name...

The mortgage is definitley in their names as I have seen the mortgage statements. The re-mortgage was done when Dad was 71 and the mortgage is broken into 3 parts. One is re-payment with about 15 years to go and the other part are interest only with 34 years of a 50 year mortgage to run. I understand what you are saying but I know they got into arrears with the original mortgage some years ago and I think that is when my brother re=negotiated the mortgage. They have about £120000 of equity so I think it is a non status mortgage. They do not have any insurance to cover the mortgage so presumably when they die the house will have to be sold and the mortgage cleared. How would I go about finding out whose name it is in. Yuo may be right and if so hr may be using asd collaterall for his business.

Uniscots97

Do you have a family lawyer you can speak to? If you can show that your brother doesn't have his parents best interests at heart then something may be able to be done.

sooz

Wow - what a horrid situation. I haven't followed your other thread, but agree with ailuro. Take a big breath & step back from the situation.

I'm horrified that such long mortgages have been taken out, & that you as siblings were all asked to make monthly contributions to the mortgages.

Your parents obviously need more outside help, if you are having to go there 2 or 3 times a day. Perhaps they can get some help via social services or age concern, or employing someone to help them. You cannot be expected to do all of this on your own.

Don't speak in haste on the phone. Organise a family meeting when everyone is home, & get everything out into the open. Try to make some notes now, whilst you are calm. You all want to discuss what is best for your parents, not scream & shout about money...however hard that may be.

If your parents are unable to pay for the mortgages they've been co-erced into taking out, perhaps it is best if they sell their house whilst there is still some capital in it, & move into somewhere smaller & more suitable - perhaps a retirement development?

Good luck

pinkshoes

rose28454 wrote: »

They have about £120000 of equity so I think it is a non status mortgage. They do not have any insurance to cover the mortgage so presumably when they die the house will have to be sold and the mortgage cleared. How would I go about finding out whose name it is in. Yuo may be right and if so hr may be using asd collaterall for his business.

You can download a title register from The Land Registry (http://www.landregistry.gov.uk/wps/portal/Property_Search) which will tell you who owns the house, which costs £3.

If there's sufficient equity, then I guess the bank won't be too bothered, as they'd just sell the house upon death to cover all the money they're owed. I presume the money owned is sufficiently less than the £120k equity?

For a man over 65 years old, his average life expectancy is 17.1 years, so at the age of 71, it seems really odd that such a long mortgage was given! Big Pension?

Have you spoken to your oldest brother about what he's up to?

Errata

If you feel your parents are being financially abused and/or your brother has obtained POA for them without them fully understanding all the implications, Action on Elder Abuse has a helpline http://www.elderabuse.org.uk/

rose28454

Errata wrote: »

If you feel your parents are being financially abused and/or your brother has obtained POA for them without them fully understanding all the implications, Action on Elder Abuse has a helpline http://www.elderabuse.org.uk/

My parents came home today and I had a brief word about the power of attorney. MyMum was very calm and said she will go to the solicitor on Monday with my youngest brother and me. She said that they realised that maybe they had not looked into it deeply enough. I said I would download some information about it from the internet so they could see the difference between the old and new powers of attorney. Hopefully we can sort it out