Power of Attorney financial decisions...

Sea_Shell

If she does eventually need more care, then it sounds like she'd be a self funder for some time.  Is that the case?

So "the authorities" are unlike to be bothered whether she has £300k or £500k left by then.

AIUI, Only if you seek LA funding would her previous "spending" be questioned.

Mojisola

Can't your sister claim UC if she has no other income apart from CA?
You should be covering half of all household bills on behalf of your mother. 

Famau

To answer the previous two posts - yes, I think she'd self-fund for a long time given her savings: but the OPG can also check up on how the Attorney manages a person's funds, so I want to be proper about it - and whoc knows how the future pans out... but i agree, I tjhink the risk of challenge is probably low, and I do think we've tried to do everything right so far.

Re UC - my sister has a small pension which, with carer's allowance, takes her pretty well to the UC threshhold - she also owns her house, so there isn't much scope for claiming, sadly.

we'll sort something out, probably a loan from me, as i said, if it's needed...

Thanks all again

Sea_Shell

Famau said:

To answer the previous two posts - yes, I think she'd self-fund for a long time given her savings: but the OPG can also check up on how the Attorney manages a person's funds, so I want to be proper about it - and whoc knows how the future pans out... but i agree, I tjhink the risk of challenge is probably low, and I do think we've tried to do everything right so far.

Re UC - my sister has a small pension which, with carer's allowance, takes her pretty well to the UC threshhold - she also owns her house, so there isn't much scope for claiming, sadly.

we'll sort something out, probably a loan from me, as i said, if it's needed...

Thanks all again

Do you think it's worth investigating your sisters budget and finances in a bit more detail? 

Maybe suggest she completes a statement of affairs for herself?

If her house is paid for (no mortgage?) and she's receiving a pension, and CA, and half the bills are paid by your mum, is there something else in her outgoings that are taking her over her income each month, leaving her struggling?

I know from experience that it's difficult to try and help siblings to recognise their financial weaknesses, and help with budgeting, but maybe it's worth exploring.

Famau

Yes, you may be right there re budgeting etc.  I've always been the cautious one who plans and saves, whereas she is less so - probably a too generous spirit actually!  But part of the issue has been car and house repairs which can be costly of course.  And we are then back to the question of whether my mum, via me, can legitimately contribute to some house repairs.  I think I will assume so as it's in her interest that my sister keeps a secure roof over their heads! 

But a modest pension that gives someone several hundred pounds a month, and is too much for entitlement to support, means that things are pretty tight at the end of the month.

RAS

I'd suggest half of the basic maintenance costs like getting the gutters sorted, painting outside, boiler checks and repairs, possibly even window replacement and definitely insulation. and if mum needs a walk in shower, fine. and half the cost of replacing white goods if needed, not with budget or premium models but mid-range.

But not re-wiring, windows for spaces mum cannot use, etc.

I'd ask your sister if she has the bills for anything that has been done since mum moved in and repay her in exchange for the receipts.

Sea_Shell

RAS said:

I'd suggest half of the basic maintenance costs like getting the gutters sorted, painting outside, boiler checks and repairs, possibly even window replacement and definitely insulation. and if mum needs a walk in shower, fine. and half the cost of replacing white goods if needed, not with budget or premium models but mid-range.

But not re-wiring, windows for spaces mum cannot use, etc.

I'd ask your sister if she has the bills for anything that has been done since mum moved in and repay her in exchange for the receipts.

I agree.

Mum should be contributing in the same way that any other adult in a household, with an income, should be.

Some may even put forward a case of if mum's pension income exceeds that of your sister, then mum's contribution should be a direct proportion of costs.  Like many couples do on this forum regularly.

Mojisola

Famau said:

my mother now lives with my sister as she needs full-time care. 

I have financial LPOA, and sold her house a while ago, because it needed more work than we were prepared to carrry out.  I've invested the proceeds in the best paying safe bank accounts. 

My sister is rather impecunious - virtually no savings.  She has stopped work to care for my mother and just gets by (she receives carer's allowance and I send her my mother's Attendance Allowance). 

I'd be feeling pretty hard done by if I was your sister.  Not only has she given up work and her independence, she's on call 24/7 and she's funding your mother's living expenses out of her small income! 

tooldle

I see no reason not to buy a reasonably priced car. Care is not just about food and warmth, it covers all aspects of a safe living environment and includes assisting an individual to maintain their routines and social contacts. Would mum like to be included in supermarket visits? Would your sister normally drive mum to GP and hospital appointments, Optician visits, Hairdresser, Chiropodist etc, social visits, days out etc?
My mum is in residential care. I drive and do not own a car. I take mum to all of the above apts. I work full time and consider taxis the best way of getting mum to these destinations both quickly and safely. I give my time for free and yes, i do charge the taxi costs back to mum. I don't think your sister should be covering costs for any action specific to mum and cost for joint actions (living expenses) should be shared. 
Might it be an idea to look at Care Home charges in your area? My mum's bill is around £3K per month. If your sister is receiving only a few hundred pounds each month as mum's contribution, I would suggest the contribution does need re-evaluating. Sister might then be able to finance her own car.

Keep_pedalling

It seems to me that the main reason your sister can’t afford to replace her car is because she has lost a good chunk of her income giving up work to to look after your mother. The car is a vital asset for your mother and your sister, and I would not have hesitated in buying one in your mother’s name. It would still be your mother’s asset so you are not giving anything away. Alternatively you could look at leasing a modest car. 

I know you have been advise by the OPG that you would need court approval, but that advice may have been influenced by how you put the question to them.