Putting relative's money into a trust

shortcrust

My gran lives in a nursing home near me. I have lasting power of attorney and take care of her finances. Both she and I have recently been getting a lot of pressure from relatives to put money in their direction. Lots of people having "emergencies". It's causing stress and damaging relationships and I've been wondering about putting her money into some sort of trust so that these things are out of our hands to some extent. She's 94, cognitively fine but getting very frail. I don't expect that she'll be moving again. She's got enough with savings and income to meet her costs for the next eight years. I wouldn't bet money on her not making it past that point.

I've only just started thinking about this and know nothing about trusts, but would welcome thoughts, suggestions or pointers to more info.

le_loup

As the holder of her LPA you have a duty NOT to give her money away. It is hers for her benefit only. If you give it for purposes that does not benefit her you are in breach of you duty and could be in trouble.
Resist and use the power of the law to help you resist. You don't need a trust.

sleepless_saver

You have a legal duty to act in your gran's best interests which definitely doesn't include handing her money out to other people in the way they seem to want.

Show them your legal obligations and explain that you can be prosecuted if you misuse her money. You don't need a trust.

shortcrust

There's no danger of me giving her money away. The main problem is relatives pressuring her directly. She knows people are lying about various difficulties but she doesn't want the confrontation or to risk upsetting them so she hands it over. The pressure on me, which I can cope with, comes from people asking me if I can have a word with her about their problems.

atush

Call a family meeting and ask them to stop, or restrict their access to visit her alone?

sleepless_saver

What you are describing sounds like financial abuse on the part of the relatives who are pressurising your gran. You might want to contact AgeUK or Action on Elder Abuse for advice - and have a look at the relevant bits of this AgeUK factsheet. Also if your gran gives away large sums of money this could cause her problems later on when her money runs out.

SeniorSam

You certainly do not need a Trust, as others have already said. Your Gran has given you the power to deal with her financial affairs, so she can simply say that she now has no control over her finances, as the control was passed to you. As also mentioned, you are restricted as to what you can do with themso hopefully, that should solve the problem.

A Trust is simply a vehicle to contain investments and property that are managed by the Trustees, usually at lease two. Those Trustees are also limited as to what they can invest in as any asset within the Trust has to be so very carefully invested at low risk.

Stick with what you have and just explain to your Gran how she can explain matters to those requesting help from her.

Good luck

Sam

margaretclare

Very reprehensible behaviour on the part of these 'relatives'. Unethical in the extreme. It's a bit like those thieves who deliberately target older people in all sorts of ways knowing that they won't have the energy to say 'on yer bike'. It certainly amounts to 'elder abuse'.

DiamondLil

margaretclare wrote: »

Very reprehensible behaviour on the part of these 'relatives'. Unethical in the extreme. It's a bit like those thieves who deliberately target older people in all sorts of ways knowing that they won't have the energy to say 'on yer bike'. It certainly amounts to 'elder abuse'.

Oh how I agree with this - nothing brings the "poisons that lurk in the mud" to the surface quicker than the whiff of (free) money.

shortcrust

Thanks for the advice everyone. I've previously told the main culprit in very blunt terms what I think of their actions. It all stopped for a few months but is starting up again now. Will have a talk with my gran about how she can handle people asking her.

margaretclare wrote: »

Very reprehensible behaviour on the part of these 'relatives'. Unethical in the extreme. It's a bit like those thieves who deliberately target older people in all sorts of ways knowing that they won't have the energy to say 'on yer bike'. It certainly amounts to 'elder abuse'.

DiamondLil wrote: »

Oh how I agree with this - nothing brings the "poisons that lurk in the mud" to the surface quicker than the whiff of (free) money.

Spot on.:(

kidmugsy

Consider reducing her capital and safeguarding her future by buying an Immediate Needs Annuity, with the income directed to paying the care home fees.