LPA and donor inheriting money - help needed

kittycat73

they were originally bonds that have been surrendered

dollywops

Will the amount being inherited by your father takes his estate over the current threshold of £325 for inheritance tax. If it does, and your father is of sound mind, then a deed of variation would reduce the eventual tax liability.

Just a thought.

troubleinparadise

kittycat73 wrote: »

hi I need help aswell my parents gave me lpa last year and throughout the year I have struggled financialy so my mumj has let me use her bank account to pay for things she has also gifted me a large sum of money now the office of public guardian has wrote to me asking for lots of imformation including documentation from the accounts does any1 know what the next step is and what will happen best and worse case scenario im concerned because of the transactions I have made for my day to day living

Do your parents have capacity? Are they still in full control mentally, but have physical problems which might prevent them from doing their own banking or managing their daily lives?

If that is the case, then you have nothing to worry about. If you have kept all documentation and receipts showing how their money is being spent, and your mother can back that up as well as the signed statements, that will help.

If you have been transparent that you are acting in their best interests and with their provable permission there shouldn't be a problem. Just pass all that documentation onto the OPG as requested.

If someone has made a complaint to the OPG they are obliged to investigate.

kittycat73

they do have mental capacity and in control mentally and yes in a home so I do all the transactions I have permission to use the account to help for my living and I help top up the fees with the giftted bonds I don't have receipts but do have statements monthly from bank so she can see where it is spent and has signed them they are asking for the bond info and why it is in her interest which I don't understand as it was gifted to me and I def think it is a complaint based on malice from an ex

troubleinparadise

I'm afraid you will just have to run with the investigation and comply.

It would be wise to start keeping receipts etc as you are always open to this sort of investigation - although I think OPG gets wise to a possibly malicious complainant.

That your mother is competent to verify your actions will no doubt stand in your favour, but it will be a stressful time nonetheless.

kittycat73

it is very stressful tbh to think I have to justify myself like this when they have been in a home for 18months self funding with no help and because they have helped me im now being treated as the guilty 1 can the lpa be taken away from me or other action b taken if they think this complaint is worthy??

jamesd

Any report was probably by someone with their own duty to look out for your parents, perhaps the bank noticing the transactions but not knowing why they were made.

The LPA can be taken away or they could work with the police on criminal prosecution if they think it's appropriate. It's not appropriate in your case, yours is just one of the ones they get where there's no problem but could have been.

kittycat73

will just b glad wen its all over wonder how long it takes wouldn't mind but 18 months with no help or support as they have been privately funded

troubleinparadise

Self-funding or not, with or without any support, having an LPA means that you have to act in the donor's best interests.

That means using their money "in their best interests".

As Jamesd says, yes, it can be withdrawn and a deputy appointed by the OPG instead; and it is possible to face criminal proceedings if it is thought funds have been misappropriated.

In your situation as you say it, your mother has capacity and can attest that she has agreed to gifting you money, you spending money on house improvements, and supporting your household bills.

For a person who lacks capacity, say with dementia, they usually cannot agree to such spending, and a very close eye is kept on attorneys and how they manage the finances, as it should be. But that is also why it is necessary to keep receipts and accounts yourself as to how the money has been spent so that you are accountable.

kittycat73

does any1 know how much a person can be gifted from a parent and y would they ask how the monies surrendered is for the best interest of the person if they have gifted it to sum1 else??? surely if its a gift y do u need to justify it?