Selling my parent's home whist in care.

[Deleted User]

My mother is currently in care and paying for it. A  deferred payment agreement on the property is currently in place but I am fighting to get her Continuous Healthcare Funding. I have power of atourney over her financial affairs. There are two beneficiaries in her will; myself and my neice ( my deseaced brother's daughter). I am not in a position to keep and maintain the house so I would like to sell it and put the money from the sale into a holding account until she passes. I need to hold on to the money in case I lose my case and have to cough up for the deferred payments. What would be the best way to handle this matter.

p00hsticks

No, I don't believe you are. Your postition as POA means that you must act in your mothers best interests, and I can't see any reason how you could ever argue that giving away her property (or money obtained from the sale of that property) would ever be that.

And unless she has dementia or is otherwise mentally incapable, she still has time to change her will before her death....

Stubod

Beatboy said:

My mother is currently in care and paying for it. A  deferred payment agreement on the property is currently in place but I am fighting to get her Continuous Healthcare Funding. I have power of atourney over her financial affairs. There are two beneficiaries in her will; myself and my neice ( my deseaced brother's daughter). I am not in a position to keep and maintain the house so I would like to sell it and put the money from the sale into a holding account until she passes. I need to hold on to the money in case I lose my case and have to cough up for the deferred payments. If I win the case and my mother receives NHS funding, am I in a position to give my niece her share of the house whilst my mother is still alive?

....absolutely not....it is not an inheritance until the person passes. While you have POA whatever you do must be in the best interests of the person to whom you have POA, and I would not consider "giving it away" to anybody would be in considered as being in their best interests?

Thrugelmir

The local authority holds a legal charge over the property to secure the debt owed. It's not posssible for you to sell the property even if you wanted to, let alone distribute the released equity.  Charges are put in place for this very reason. 

greatcrested

The money belongs to your mother until she dies.

Under the POA you are simply managing it for her in her best interests and cannot simply decide to give it away willy-nilly. You must manage it  responsibly, either using it to pay for her legitimate debts (eg house costs, or her care needs), or investing/saving it in a financially responsible way.

Once she dies, your POA ends. It will then be for the Executer(s) of her will (which may be you or may be someone else) to manage her Estate, pay any Inheritance Tax due, and then, fially, distribute the Estate as per her will.

[Deleted User]

Thanks for your comments. I have no intention of giving away any of my mother's funds. That was a hyperthetical question. I do need to sell the house as I am not in a position to maintain it myself. I am also a pensioner. My mother has dementia and cannot change her will. I don't see that I should hold onto the house just for the sake of the local authority who pushed her into the care home in the first place, What I want to do is sell the house before it deteriorates. The money from the sale can go into some sort of hoding account for the rest of her life. This would pay off her deferred payments if I lose my case. I do have a good case and professional people representing me. I am also the executor of the will. 

AdrianC

Thrugelmir said:

The local authority holds a legal charge over the property to secure the debt owed. It's not posssible for you to sell the property even if you wanted to, let alone distribute the released equity.  Charges are put in place for this very reason. 

It can be sold - the charge simply has to be lifted on sale, for which the beneficiary of the charge will require the debt to be paid. Just the same as that most common of charges, the mortgage...

They won't allow you to sell, then maybe repay later...

Rambosmum

You can sell it, just be clear with the conveyancer about the charges at the start - they can then ensure that these are discharged before funds are released back to your mother. 

Have your trust agreed that CHC would be back dated? Most won't do this, they date from the assessment. So the charges would still stand.

theartfullodger

Mum can cancel LPA or otherwise change her will.  Might decide to leave everything to Battersea Dogs home.

Counting, chickens, hatching....

(My brother is in hospital, was in care home, a relative has LPA both sorts)

Thrugelmir

AdrianC said:

Thrugelmir said:

The local authority holds a legal charge over the property to secure the debt owed. It's not posssible for you to sell the property even if you wanted to, let alone distribute the released equity.  Charges are put in place for this very reason. 

It can be sold - the charge simply has to be lifted on sale, for which the beneficiary of the charge will require the debt to be paid. Just the same as that most common of charges, the mortgage...

They won't allow you to sell, then maybe repay later...

My comment was made in the context of what the OP was suggesting. In that the cash would be held pending the outcome of the dispute, and it could be utilised as they wished. 

frogglet

Also as far as i was told for my uncle, continuing care can be reviewed. It isn't a one off decision.