Power of attorney-household expenses

Lem08

Hi
I have sole LPA on behalf of my dad. I have been using it for a couple of months to pay my parents' bills. Dad gives mum some cash regularly to pay for their food and he would like me to do it on his behalf now. I keep records of what I spend the money on in the form of receipts and in an account book, however most of my dealings with his account are not on a cash basis so can be logged at the bank.

Whilst my dad is happy to give my mum money for the housekeeping how should this be administered in the framework of the LPA? I've read that only small gifts can be given for birthdays and that the money needs to be managed appropriately in case he needs to go into a care home, but what would be the best way to 'pay' my mum to get the food every week? She usually shops in cash.
Any advice gratefully received.

agrinnall

I can't see that giving your mum money to pay for general living expenses would be seen as anything out of the ordinary. I'd say that as long as you continue to keep a record and that anything outside what might be considered normal expenditure has a reason attached (so for instance if a household appliance breaks and a new one has to be bought) then you're unlikely to have any problems.

Mojisola

Lem08 wrote: »

Hi
Dad gives mum some cash regularly to pay for their food and he would like me to do it on his behalf now. I keep records of what I spend the money on in the form of receipts and in an account book, however most of my dealings with his account are not on a cash basis so can be logged at the bank.

Whilst my dad is happy to give my mum money for the housekeeping how should this be administered in the framework of the LPA? I've read that only small gifts can be given for birthdays and that the money needs to be managed appropriately in case he needs to go into a care home, but what would be the best way to 'pay' my mum to get the food every week? She usually shops in cash.

Your mother isn't being given presents - she's spending household money on food!

margaretclare

Doesn't this come under the heading of 'sharing living expenses', which is what most couples do?

Your Dad isn't 'giving' this money in the sense that gifts are usually thought of. They both eat, don't they? I can't really understand what the problem is.

dzug1

It isn't a gift. Your father has asked you to get him cash from the bank - as he is perfectly entitled to do. He's also entitled to spend it as he sees fit. He has the right to run his own affairs, LPA or no LPA, in so far as he wishes and is capable of so doing.

Just put it in the account book as cash for father if you record it at all.

Lem08

Thanks for your replies, I'm quite new to this and just want to make sure what I'm doing is correct. I'll do what you suggest and note in the account book as cash for dad and keep receipts for everything.

troubleinparadise

Dear Lem08

I think that as long as the amounts of cash remain withdrawn remain pretty much the same as they were when your Dad was handling his own finances you won't have any problems, along with keeping records.

Gifts are a separate issue - he might historically have given, say, grandchildren money for birthdays or Christmas - those can be continued at a similar amount that he would have given before, and recorded as such. Money "given" to your mother for household bills are not gifts as such.

Should there come a time later that your dad might need residential care and the LA do a financial assessment of his finances, any suggestion of "deprivation of assets" might trigger an investigation. But that rather more applies if thousands have disappeared in cash withdrawals which are out of keeping with your dad's previous spending habits, or your parents' lifestyle.

And of course if a third party who might feel that the person who has the power of attorney is not acting in the donor's best interests, and complains to the Office of the Public Guardian, again triggering an investigation.

A difficult time for your mum especially - I know I might feel somewhat uncomfortable having to ask my children to be allowed some money for the weekly shop.... and probably difficult for you too. Good luck.