Lump sum advice

treecol

My mother passed away recently & my father had over the years put all his earned savings in her name as she was a non tax payer. He is taxed at source on his private pension. Her will left everything to him, but as he has dementia my husband & I have power of attorney & we live with him caring for him full time. We now have probate & need to do something with the money but because he is mentally living in the past, he is adamant he doesn't want to pay any more tax than he already does, so will not make a decision about where we should put the money for him.
Is our best bet just a current account earning minimal if any interest? He already has maximum premium bonds. He says he wants to give us someas we now have no income, but that makes me uneasy because of the responsibility of our power of attorney. The sum is around £150k, so I realise splitting it between accounts would also be wise.Any advice would be welcome.

Savvy_Sue

I am sorry for the loss of your mother.

But, as Dad has dementia and you have PofA, he doesn't have to make the decision: you can just do it.

I'm afraid I can't advise beyond that, and you are right to be wary of giving yourselves money, because you have to act in HIS best interests. However you can continue with any giving he used to do, so if he was always very generous at birthdays and Christmas then you can continue to be generous to yourselves.

treecol

Thank you for your reply. I suppose perhaps the question should really have been about PofA etc as I'm nervous of what it entails. One of mum's banks has already told us they would open an account in my husbands & my joint names, because Dad is unable to open his own account, & the savings she has with them would go in there. It really surprised me, I suppose & I want to be really careful. I'll do a search on here about PofA.

Cook_County

You have to do what is in his best interest. Is the EPA or LPA registered yet? If not you need to get it registered and then invest in appropriate accounts as the Attorney.

treecol

Yes, both Lasting PofA for Health & welfare & finances are registered & his solicitor & doctor agreed that they needed to be used, because Dad's biggest issue is he cannot/will not make decisions. So I cannot get him to tell me what to do, I've asked him every day for the last 3 months. He just says he doesn't want to pay any more tax & we should have some money.

Savvy_Sue

treecol wrote: »

One of mum's banks has already told us they would open an account in my husbands & my joint names, because Dad is unable to open his own account, & the savings she has with them would go in there. It really surprised me, I suppose & I want to be really careful. I'll do a search on here about PofA.

I'd say that advice was wrong, very wrong. Your Mum's savings pass to your Dad. If he has any existing accounts then the money could short-term be transferred in there. Any future accounts would be opened using the PofA, and that's what they should say!

xylophone

http://www.direct.gov.uk/en/Governmentcitizensandrights/Mentalcapacityandthelaw/Makingarrangementsincaseyoulosementalcapacity/DG_185921
Is the POA registered?
Your duty as Attorney is to act in your father's best interests.
http://www.adviceguide.org.uk/england/relationships_e/relationships_looking_after_people_e/managing_affairs_for_someone_else.htm

Any account opened should clearly show that the money is your father's and that you operate it as attorney.
http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1024

Don't forget to check out your father's tax situation.

Have you thought about an ISA for him?
http://www.newcastle.co.uk/help/isas.aspx

treecol

It seems that the reason the account would be in our name is because we applied for probate as dad can't & it is in our names. Another bank today also said the account would be in our name & other finacial organisations she had investments in have said the same. Apparently the probate in our name changes it. I think we will visit the solicitor, that way, we all know for certain. I really wouldn't like anything to come up after his death when it's too late. Thanks all for the imput, though.

Savvy_Sue

Ah, an executor's account - that's different! Although the one I have for Dad is called "executors of the late Joe Bloggs" and my brother and I are signatories. But the money is not ours, it belongs to the estate of my late father, and we dish it out from there.

treecol

Thanks Sue, that reassures me a little then! I still think I'll see the solicitor when the banks have opened the accounts to to get his opinion & keep everything in the open. Today dad has said he wants to give the money to us. Now I'm really worried!!! He can't just do that can he?

xylophone

You are acting as executors of your mother's estate and collecting various monies into the executors' account- your duty is now to distribute the assets (after debts etc) as the will directs.

In view of your father's condition, (you say he has dementia)
and particularly in view of the fact that he might require residential care at some point in the future, I would be very careful about his suggestion of "giving it all to you".

See post 7 above and take legal advice as you suggest.