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Power of Attorney

I have been running my mother in law's finances for nearly 18 months. She is happy with the arrangement, as are other family members. She has dementia and so cannot manage her affairs.
Her financial situation is straightforward and she has no house to sell or any complicated investments. (she also has a will).
She has savings which are readily accessible to my wife (her daughter) as she has a joint current bank account and can sign cheques with just my wife's signature; her main savings are in an instant access account with the same bank and so can be transferred easily to the current account when required.
She was having care at home, but following a fall, and having an operation,she is shortly to go into a care home.
A Social services case manager, at a recent assessment meeting for her future care needs, strongly advised the family to gain power of attorney.
I said that I did not think it necessary as it would be quite simple to pay care home fees (she had been paying care agency fees by cheque) Considering the cost, the form filling and general hassle, not to mention legal responsibilities, I cannot see it as a crucial element in her continuing care.
There is a further point in that a decision to place her in a care home has been taken by Social Services, with the family's consent, so a presumption of not having mental capacity, already excludes this course of action.
I would welcome any advice on the matter described.

Comments

  • Gingernutty
    Gingernutty Posts: 3,769 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Power of Attorney should already have been applied for.

    Right now, although it's on her behalf, you do not have the right to spend your MIL's money - you have no legal powers should anything get worse and no recognition from the bank should you require a change of set up.

    Should Social Services step in, there is no document you can wave under their noses telling them to butt out.

    POA is a hassle and is pricey, but that's nothing compared to dealing with the Court of Protection which is even pricier.

    Trust me, you do not want to go down that road.

    Try here for more information
    :huh: Don't know what I'm doing, but doing it anyway... :huh:
  • Goldiegirl
    Goldiegirl Posts: 8,805 Forumite
    Part of the Furniture 1,000 Posts Rampant Recycler Hung up my suit!
    Yes get Power of Attorney without delay.

    Your MIL isn't going to get any better, and wthout POA you have no right to deal with her affairs, and no bank will talk to you about her affairs. I assume she is in rented accomodation - if she's going into a care home, you'll need to give up the tenancy and deal with all the paperwork related to that, deal with the utility companies etc. But you'll have no right to do that, and all those people might not be able to talk to you without the Power of Attorney - imagine how frustrating that would be.

    Get the POA as soon as you can, and hope that you are not already too late. It could already bee deemed that your MIL is 'too far gone' to be able to grant you POA, in which case you'd need to apply to the Court of Protection for Receivership.

    I've been there myself. My mum had Alzheimer's, and we left if too late to get POA. I was granted Receivership, but it would have been a whole lot easier to have POA
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
  • Errata
    Errata Posts: 38,230 Forumite
    10,000 Posts Combo Breaker
    her main savings are in an instant access account with the same bank and so can be transferred easily to the current account when required.
    Is the savings account a joint one with your wife? If it isn't then it can't be touched by her.
    .................:)....I'm smiling because I have no idea what's going on ...:)
  • Kore_Arabin
    Kore_Arabin Posts: 32 Forumite
    edited 2 January 2013 at 11:39AM
    From your post, I understand that your mother-in-law will be paying her own care fees and, therefore, she must have been assessed as having more than £23,250 capital in her own right?

    Has the local authority assessed your mother-in-law's share(s) of the account(s) or, even though the money is in joint names, have you declared it as all belonging to your mother-in-law?

    If your mother-in-law does not possess sufficient capacity to make a power of attorney, then an application to the Court of Protection can be made, to appoint a deputy to manage her finances.

    In practical terms, if your wife is the only child, and your mother-in-law's savings account is also in joint names, you may be correct that the hassle and expense of setting up a formal PoA/deputyship are unnecessary.

    Are there any children other than your wife, who might query how your mother-in-law's finances have been managed?
  • Thank you all for your prompt replies. On the basis of GN and GG's advice to apply for POA to pre-empt any problems with her bank,utilities, Social Services etc. Her son and myself have both decided to apply to register as attorneys (finance) and the forms have been duly signed by MIL and witnesses, and sent off. I was also persuaded by the fact that my MIL was in receipt of the guarantee element of the Pension Credit and therefore exempt from any registration charges.Both attorneys can act jointly and severally so I can continue to manage her financial affairs on a day to day basis. We have also applied for a Health and Welfare POA for which MIL's daughters are involved. All her children are aware of what has transpired.
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