Probate questions

Hhzg

My father passed away in August this year, and both nysef and my two brothers have been named as executors of his will.
Basically his will leaves everything to mum and mum's will leaves everything to dad. Mum is in a care home, and I have applied for Power of Attorney to handle things for her - she just wouldn't be able to cope with it all, and mum and my two brothers are all in agreement with this.
Ok so there is about £65,000 in savings and ISA's, both in joint names and in sole names.
There are two joint bank accounts, both have around £18k in them, there is an ISA in my dad's name which is worth around £14k and the bank have just written to me to ask if 1) we cash it in, 2) we keep the money where it is for 3 years or 3) we re-invest it - I have absolutely no idea what to do with it at this minute in time, could anyone please advise? Also what do I do with regards to the two joint bank accounts? The banks are aware of my dad's passing, but obviously because mum is in no fit state to deal with things, where do I go from here?
There is also the question of care home fees, my dad was paying privately for mums care, she went into a care home in March of this year, so from research I've done, until mum's savings fall below £23k we still need to pay privately, is that correct?
Finally, do I need to get a Grant of Probate, or see a solicitor/financial advisor?? Up to this stage, I've been quite confident about dealing with everything. They were in sheltered acommodation, so no property to sell, it is purely the finances I need to sort. I have opened a seperate bank account in my name to deal with finances, and will of course document everything I've spent, re outstanding bills etc, I think these have all been taken care of. 
One last question, I'm guessing I can't "gift" any sums of money to us siblings from my dad's estate, and that until mum passes, its all her money?
Sorry for the long post, any help would be very gratefully received!

xylophone

There is no property to sell - your father was living in rented sheltered accommodation and your mother is in a care home.

It would appear that your mother still has capacity but has asked you to take over management of her affairs as her Attorney.

You will register this with the financial institutions/care home/ DWP etc as soon as you receive the documents.

You will then be able to manage your mother's affairs.  You may not make any gift to yourself or anybody else from your mother's money unless  it falls under the category of a normal amount made for Christmas/birthday.

It seems that your mother has capacity so that even if she expresses a wish to make gifts, you will need to explain "deprivation of capital" rules as she is paying for her own care.

I have opened a seperate bank account in my name 

Do not pay money belonging to your mother into an account in your name.

Once you have PoA, you mange accounts in her name as Attorney.



Regarding the bank/building society accounts, the joint accounts fall into your mother's sole ownership as the surviving account holder - the bank should only require sight of your father's death certificate to remove his name from the accounts.

From the figures you have provided (£65,000 total savings between both parents), it seems

£36,000 in the joint accounts - automatically becomes your mother's.
£14,000 in your father's ISA
£15,000 in your mother's sole name?

If there is only £14,000 in your father's sole name and the bank is prepared to allow you to deal with it without probate, then it hardly seems worth obtaining probate though you may do so if you wish.

Your father has left this money to your mother - even if he had not, she would still benefit from  the arrangement described here https://www.gov.uk/individual-savings-accounts/inheriting-an-isa-from-your-spouse-civil-partner so can  arrange to hold this in an ISA of her own and receive the income tax free.

I assume that you have advised DWP of your father's death so that any necessary adjustments can be made to your mother's pension?

Was your father in receipt of any other pension that will now pay a widow's pension to your mother?

Presumably her fees are being paid from one of the joint accounts - if so, this will continue.

Otherwise, you will need to explain to the home that you are waiting for PoA to deal with your mother finances.

Re paying for care, see https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs10_paying_for_permanent_residential_care_fcs.pdf

Dox

Hhzg said:

One last question, I'm guessing I can't "gift" any sums of money to us siblings from my dad's estate, and that until mum passes, its all her money?

If your dad's will left everything to your mum, and she has capacity to gift money to you, then that's quite possible - but read the above post carefully, especially the bit about deprivation of assets, before having that conversation with her.

Keep_pedalling

Anything other than normal Christmas / Birthday gifting is out of the question as it would certainly be classed of deliberate deprivation.

Do not lock the money held in his ISA up for 3 years, your mother’s money needs to remain liquid as care costs will burn through it rapidly.

if the LA were not involved in her going into care get them involved now, do not leave it until her assets have dropped below the threshold for LA funding.

Is she receiving attendance allowance? If not apply ASAP

badmemory

Keep_pedalling said:

Is she receiving attendance allowance? If not apply ASAP

I'll second that.  My mother's care home manager told us that "normally" any person in a care home should get the higher rate.  If nothing else it ekes out the savings for a little while longer.  She should have been getting it since she went in there though.

Keep_pedalling

badmemory said:

Keep_pedalling said:

Is she receiving attendance allowance? If not apply ASAP

I'll second that.  My mother's care home manager told us that "normally" any person in a care home should get the higher rate.  If nothing else it ekes out the savings for a little while longer.  She should have been getting it since she went in there though.

It is only paid while they are self funding, and can only be backdated to the day the application went in, so if it is not in place it needs to be sorted as a matter of urgency.