Tough POA question: Beneficiary of Will lost capacity

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Hi all,

I got a super tough question regarding Power of Attorney, inheritance from an estate and how to transfer assets. It will sure test anyone's knowledge of the area!

So, my mother and I are attorneys for my father who lost capacity a few years and is in a care home.

My father (the donor of the POA) has had a brother who has recently passed away. In the Will my father was made a beneficiary to half the estate, which included a house free of any mortgage. So my father will be inheriting once the executors have done there job.

The house in the estate is in a terrible state, but nonetheless in a decent area and can be done up. Ideally, we as a family would like to take on the house and rent it out to provide an ongoing income. We would be capable of buying out the other beneficiary of the Will.

However, we won't undertake the task if the house is left in my father's estate, as it is not an ideal situation for someone who has lost their capacity being the owner of a property which would require substantial management. Its really not practical.

My question is how can the house/asset be transferred to my mother or I, so we can manage the property and do all the work that is required on it?

I know usually if there would be a change of a Will, beneficiaries would use a 'Deed of Variation' to change where assets are going. However, as my father has lost capacity, and despite us being his attorneys, we would not be able to change this Will.

How else can we transfer the property/assets, with the ultimate goal of the property being owned by my mother or I?

Tough one I know, any help would be greatly appreciated!

Comments

  • Torry_Quine
    Torry_Quine Posts: 18,840 Forumite
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    As you have POA you have to act in his best interests. Does he have funds other than this or is he council funded? I ask because deprivation of assets could be an issue were the house to be given to his wife
    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
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  • itsanne
    itsanne Posts: 4,992 Forumite
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    You can't. What you want is for the advantage of your mother and yourself - your father wouldn't benefit at all.

    To be blunt, it wouldn't be any more impractical managing the house while your father owned it than if you did. You can't simply transfer an asset to avoid care costs. As Torry Quine says, that would be deprivation of assets (unless he has sufficient other assets to cover his costs as long as necessary).
    . . .I did not speak out

    Then they came for me
    And there was no one left
    To speak out for me..

    Martin Niemoller
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    andyuk2005 wrote: »
    ........
    The house in the estate is in a terrible state, but nonetheless in a decent area and can be done up. Ideally, we as a family would like to take on the house and rent it out to provide an ongoing income. We would be capable of buying out the other beneficiary of the Will.
    .......
    My question is how can the house/asset be transferred to my mother or I, so we can manage the property and do all the work that is required on it?
    ......
    Tough one I know, any help would be greatly appreciated!

    Simple

    You buy the whole house off the brothers estate at arms length then your dad and other beneficiary get the proceeds from the estate.
  • andyuk2005
    andyuk2005 Posts: 137 Forumite
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    Simple

    You buy the whole house off the brothers estate at arms length then your dad and other beneficiary get the proceeds from the estate.

    Ah! That makes sense! I knew there was a way to do it, sometimes the complicated mind doesn't see the simple solution! Thanks for that!

    To answer the other questions, the donee's care was already paid for. We just knew that selling off the house in one go in the state its in won't reap that much. But doing it up and renting out would be more economical and efficient to bring in a better income, but it isn't practical whilst in the donee's estate.

    Thanks for your help folks!
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