Paying a relative as Power of Attorney for care of relative

Jessica1963

Hi. I hold the financial Power of Attorney over my mums money. She has dementia and is living with my brother in his home. She has sold her house and the funds are in the bank, the account was set up for me and mum as POA. I look after her money, now my question is.

As my brother had to give up work and compromise his lifestyle and give up an income to take care of mum full time. Am I legally able to pay him a set amount each week for her care (as he is unable to work) from my mums bank account.?

This amount would be no more than the cost of a good privately run care home. He receives carers allowance also.

I figure if mum was to live in a care home I wouldn't have to ask anyone's permission to spend her money on her care. As she lives with my brother is there a difference ?

Hoping someone can shed some light. Thanks

Jessica1963

May I also add that my brother holds POA for my mums health and welfare

bigadaj

My opinion is that you should be fine to do this, your primary duty in acting in your role is to ensure that money is used in her best interest which seems to be the case.

You could contact age concern and see if they might be able to give some more advice that could help.

A concern might be that if your brother is a full time carer then it's effectively his job, so any payments maye be subject to tax and national insurance payments.

Mojisola

If he earns over £100 a week, he won't be able to claim CA.

She could be paying half of all the bills (or even slightly more if the heating has to be on higher or there's lots more washing to be done or she has a special diet) - this wouldn't be wages for him but a contribution to household expenses.

Keep everything above board and in writing so that every penny can be traced if necessary. If he is being employed as her carer, he might need to register as self-employed.

Jessica1963

Thankyou but if he is liable for tax and NI, would this be his responsibility or would I be held accountable for this?

alanq

This sounds the sort of arrangement that requires expert advice. As the question specifically is about dementia perhaps The Alzheimer's Association could point you in the right direction.

http://www.alzheimers.org.uk/

Paying his additional expenses (after taking into account that he is already receiving CA) is one thing. Paying him a wage may present issues. If your brother became your employee then things like working time directive, employer's pension contributions (not talking about NI) etc. etc. could become issues.

alanq

In the case of someone who is not self-funding...

"Employing a family member

There are some restrictions about who you can employ using direct payments. It's not usually possible for someone to use direct payments to employ:

• their spouse or partner
• a close relative who they live with"

http://www.nhs.uk/CarersDirect/guide/practicalsupport/Pages/Directpayments.aspx

G_M

This amount would be no more than the cost of a good privately run care home. He receives carers allowance also.

I'm no expert in this area, but that bit worries me.

"a good privately run care home" is very expensive. Why? Because it has special facilities. Professional, trained staff. Liability insurance. etc

Your brother is doubtless doing a good job, and from your mum's point of view I'm sure it is preferable to be in a family environment, but nonetheless you brother is not (I assume) trained or professional.

I think that paying him that amount could easily be construed as excessive, especially to a family member....

cte1111

The care home cost would also cover the cost of food, heating, laundry and generally keeping a roof over her head.

Mojisola

cte1111 wrote: »

The care home cost would also cover the cost of food, heating, laundry and generally keeping a roof over her head.

Those costs should already be being paid by the POA but not as wages for the carer.

cte1111

Mojisola wrote: »

Those costs should already be being paid by the POA but not as wages for the carer.

Yes, that was the point I was making.