Elderly Parent needs financial advice

vonsworld

Hello

My Mum is 80 years of age and disabled and in recent years I have been living with her at home to provide full time care. I am an only child and her sole heir.

Although we hope my Mum will be around for many years to come she is concerned that when she passes away her finances are made as easy as possible for me to administer. Of particular significance is her house which she owns, and is also my home, so I would continue to live in the property in the future.

Our question is what plans or changes to her finances can my Mum make now that will make it easier for me to organise her affairs in the future, and also for me to take over the ownership and payment of bills etc at our home?

For example, if my Mum’s bank account were in joint names with me, would this prevent all her assets being frozen upon here passing until after probate? Or should she perhaps switch to using an account solely in my name?

My Mum has a small amount of savings, should these be transferred into my name also.

What about utility bills for our home, would these be better off in my name or at least joint names?

If anyone can offer some advice, or has perhaps been in a similar situation, please could you let us have some tips and suggestions since it will help to put both our minds at rest.

Thanks

Jack_Griffin

I've a couple of questions answering which might help people who know better to form a view. Also this may be the wrong board for this topiic, it isn't really about pensons per se.

1) Is the house & savings over £325,000, thats the threshold above which you'd have to pay inheiritance tax at 40%.
2) How close are you to retirement age & have you got any pension beyone the state pension.
3) Have you any income/savings yourself or do you rely on carers allowance & other benefits.
4) As she's diabled, has your Mum got attendance allowance? That wasn't means tested a few years ago when I set it up for my Auntie, not sure if the rules changed since.
5) You say "Although we hope", is this a reference to your partner/children, you don't say but I presume your Dad is no longer around?

vonsworld

Thanks for your reply, here is some further info:

1. The house and savings are well below the inheritance tax threshold, so as I understand it any assets transferred to me would not be subject to tax if my Mum passed away within 7 years.

2. I am 15 years from retirement and only have a small personal pension.

3. At the moment my income is from carers alloowance and a pert time job.

4. My Mum has attendance allowance and as you mention that is not means tested.

5. There are no other people involved, I am an only child and the sole heir.

So whatever we decide to do, I believe there are no tax implications and only my Mum and myself are concerned.

Hope this helps and you may be able to advise us further.

jackyann

It is a good idea for you to have at least one joint account, and for the utility bills to be in your own or joint names.
You should also consider your mu filling out forms to give you power of attorney: you can fins the forms & information at lawpack. She can fill out the forms at any time and you don't "activate" them until you need to. You don't say who else is involved - it is often a good idea for 2 family members to have PoA. This not only avoids accusations, it is actually very helpful to have another trusted person's perspective.

I presume that your mum & you are worried about care costs (either at home or in residential care) that she will have to pay out of her savings. There are specific rules about what can be given away; and on your right to stay in the house. I could quote them, but I think you are best to do your own research as so much depends on your income, the sums involved, what the will says etc.: AgeUK and direct.gov.uk are good places to start.

edited to say we were cross-posting, and you answered some of my queries - but I still think it worthwhile investigating, and considering a trusted friend to help with PoA

dunstonh

You really dont need to be doing anything other than a Will.

xylophone

https://www.gov.uk/power-of-attorney/overview

Have a look at this.

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS53_Capital_income_and_means_tested_benefits_fcs.pdf?dtrk=true

http://www.thisismoney.co.uk/money/experts/article-2181497/How-navigate-care-fees-maze-long-term-care-questions-answered.html might be worth a read.

You and your mother should each make a will.

Jack_Griffin

This may be worth looking at, particularly the bit about passing on property with conditions attached. If only so that your Mum can feel assured about the situation.

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/pass-home-to-children.htm

Even while awaiting probate I understand the banks allow access to funds for all necessary expenses, like funeral costs, otherwise they'll freeze the account. I couldn't say how that would work for joint accounts, probably worth asking the bank.

As jackyann says, setting up power of attorney is probably worthwhile, so you can act swiftly should the need arise. My cousin has this for the Auntie (93 yr old) I mentioned & another cousin also has the same rights. In fact she has been managing all the bills for a while with access to her online bank account (I'm only the odd job man really), recently my Auntie has gone into a care home, at which point the power of attorney had to be triggered.

xylophone wrote: »

You and your mother should each make a will.

Wow, I must say that is a very good point, what happens in the unlikely event of OP pre-deceasing their Mum.