Lasting Power of Attorney

Power_and_Responsibility

Mojisola wrote: »

You have LPA for your Mother-in-law and she inherited everything after her husband's death - is that right?

What your FIL asked you to do - outside of instructions in his will - are irrelevant. If he had wanted you to have use of the capital, he should have left it to you. You have to manage your MIL's affairs as she would want and in her best interest.

If she is happy to live with you, you could put some of her capital towards a house but she will be a joint owner with you. Who inherits when she dies? If her estate is to be shared with other people, how will you release the money from your house for them?

You can't use any of her inheritance for your children.

Do take legal advice. If some of the family are likely to cause problems, you don't want to give them ammunition against you.

Hi and thanks for replying. Yes she inherited everything. It was a mutual will and everything moved to her. When she dies, the daughters and I inherit everything. My wife and I inherit over 85% of the estate, the other daughters have cash amounts stated in the will. I will speak to the solicitor that went through the will and see what our options are. Obviously we need to know as it affects what we do. Thanks for your advice.

Power_and_Responsibility

getmore4less wrote: »

When you set up a LPA part 8 and section B requires minimum of 2 people

I guess if family are an issue those persons were carefully selected.

Yes, most definitely they are!

Power_and_Responsibility

dzug1 wrote: »

When the PoA is registered with the OPG then all the people named in it as requiring to be notified when it is registered must have been notified.

In general you cannot make yourselves large gifts using a Power of Attorney - only the sort of thing that the donor would have done for birthdays and Christmas. If the OPG find out that you are doing so then they are likely to revoke the PoA. You may be able to get their permission to make such gifts but it's not an easy process.

The donor can make such gifts herself but if she has lost capacity (you seem to contradict yourself about that) then that's it.

Thank you. I think I wasnt clear about the capacity. She has full capacity, no worries on that front whatsoever, but she has never managed or been responsible for administering money throughout her entire life. I know that seems hard to believe, but she really doesnt. Her husband has literally given her any money whenever she has wanted it. Possibly a generational thing??

Mojisola

Power_and_Responsibility wrote: »

Hi and thanks for replying. Yes she inherited everything. It was a mutual will and everything moved to her. When she dies, the daughters and I inherit everything. My wife and I inherit over 85% of the estate, the other daughters have cash amounts stated in the will. I will speak to the solicitor that went through the will and see what our options are. Obviously we need to know as it affects what we do. Thanks for your advice.

I hope this works out as your MIL intended. It's more usual to have percentages as inheritances rather than set amounts.

If a set amount is given, it's possible to have the following scenario - £10k to be given to three people and the bulk of the estate to X but when the death happens, the estate has been depleted by care home fees and, after the £30k has been paid out, there's very little left for the person who was intended to receive the most.

Power_and_Responsibility

troubleinparadise wrote: »

Also read up on "Deprivation of Assets".


I'm afraid that whatever your FIL's verbal intentions might have been, your MIL's assets, including his estate, are now hers, and you have to be seen to be acting in her best interests.

Co-investing in a house that you all share could be a minefield should she perhaps require residential care in the future.

Thank you. I will look at the article later on. I'm thinking perhaps a document drawn up by a solicitor showing this may suffice, but I will ask. Dont get me wrong, we are trying to be completely above board with all of this.

Power_and_Responsibility

rpc wrote: »

This sentence is confusing.

Do you mean she has the capacity to make the decisions but not to deal with the paperwork?

If she cannot understand the financial or property decisions then she does not have capacity.

If she still has capacity then SHE can instruct a solicitor (or bank, etc) about what she wishes and sell/buy herself. That way, houses could be bought and gifts could be made without using the LPA. If you do what you propose using your LPA then you will almost certainly end up in all sorts of bother, even if it was her wish when she was compus mentis.

You could buy somewhere and she pays you a lump sum of "life rent" but that needs to be reasonable. You could also buy as joint owners. However, your options are more restricted if using the LPA because you must do what is objectively in her best interests and you want to avoid anyone being able to challenge your actions.

Yes, dead right about the capacity thing.

Power_and_Responsibility

Mojisola wrote: »

I hope this works out as your MIL intended. It's more usual to have percentages as inheritances rather than set amounts.

If a set amount is given, it's possible to have the following scenario - £10k to be given to three people and the bulk of the estate to X but when the death happens, the estate has been depleted by care home fees and, after the £30k has been paid out, there's very little left for the person who was intended to receive the most.

I know, it is a scenario that I have gone over with the wife......

stevepett

Mutual Wills are very specific dangerous legally binding Wills where the survivor cannot change their Will under any circumstances.
Much frowned upon and often lethal in their effect!

Most probably they had mirror Wills - i.e. they both reflect each other.

The intention is similar, but after the first death, one is totally binding and the other can be amended to deal with life changes.

Steve

stevepett

I think you absolutely MUST send your MIL to a solicitor you have no connection whatever with.
You mustn't arrange it, take her there, or have any involvement in it. Get one of her friends to help if need be.
Let her explain to the solicitor what is wanted and get the solicitor to write to you outlining her wishes.

This is on the basis that she DOES have mental capacity, she just isn't used to making decisions.

You are in very difficult territory and could easily find yourselves accused of undue influence by the undersirables, who see a way to a bigger share, and perhaps even have the LPA and later the Will struck out by the Court of Protection.

Power_and_Responsibility

Thanks very much. Nope definitely a mutual will. The FIL did not want his wife to be 'bullied' (because thats what they are, what they have always done and he realised at the last moment he wanted pretty mucn everything to be inherited by the daughter that had done so much for him - which was nothing spectaular, she was just a normal loving daughter) into doing whatever they wanted when he wasnt here. he was concerned that his wife may be suggestible and he wanted his legacy and what he had built up to be passed on and not go to waste which it would invariably had done.