LPA query

samsam89

Hi there.

Some advice sought if I may. My father (parents are separated) has decided following legal advice that he wants to set up an LPA. He has previously had a stroke and has a
rare blood condition which makes him more susceptible to blood thickening.

He is in a relationship with a women who while both my brother and I get on with, has been unusually pushy when it comes to how his finances should be distributed should he pass away. She believes her two children (both of similar age to my brother and I, and are grown up and living independently with children/mortgage etc) should be treated equally and should benefit financially should he die. The underlying point is that my fathers estate (house approx £350k and around £600k in various places, so he states) was his before they started the relationship and she has worked minimally and not really
contributed.

He disagrees that her children should benefit from him financially as they have a father of their own, are financially stable and he is not really their step father. His words, not
mine.

He has set his will up so that any money from his estate is equally split between his partner, my brother and myself. She will also have the legal right to live in the house indefinitely until she chooses to move or passes away at which point it becomes the property of my brother and I. He also wishes to set something up so that a fund of money remains earning interest that she can live off, but the lump sum then passes to myself and my brother upon her death (not sure if that’s even possible…?)

This seems to be a very reasonable way to set things out as it gives her the security she needs while ultimately ensuring my brother and I inherit from our father in the way he wishes.

He has been to see his solicitor and rang my brother and I to state that he wants to set his partner up as an LPA and have my brother and I in reserve should anything happen to her.

My query and natural apprehension is   regarding what power would that then give her and what implications that could have to his health and finances? Could she then simply withdraw his cash and us not be able to do anything about it (or even know about it) ? What decisions does that then mean she can make in respect of his health - ie. the on off switch?

Ultimately it’s my fathers decision, however my brother and I have spoken and believe a joint LPA would be more appropriate (with either my brother or myself, not both) as this would maintain a level of trust that both persons are acting in his best interests. Is that a reasonable course of action or am I missing something?

Keep_pedalling

Legally if dealing with someone’s finances under an LPA the attorney must only act in the donors interests, but that does not someone abusing their authority and it can be hard to prove that any abuse has happened. 

samsam89

That’s very interesting as my father was trying to assure me on the phone earlier that there could be nothing untoward as anything the LPA wants to do is in his mind heavily scrutinised. Clearly that is not the case?

Ms_Chocaholic

As an example, if your father lost capacity, his partner could empty his bank accounts and if she is the only one with LPA then there is no one to check up on what is happening.

Ms_Chocaholic

In terms of her continuing to live in the house after your father's death, how old is she? Has your dad thought this through, what if she re-marries.

Ms_Chocaholic

Sorry for all the questions, you first post states your parents are separated, does this mean they were married and are not divorced?

samsam89

Ms_Chocaholic said:

Sorry for all the questions, you first post states your parents are separated, does this mean they were married and are not divorced?

Hi, no problem for the questions at all - you’re being very helpful! Yes my parents were married and then divorced so the marriage wouldn’t have any bearing I suppose. 

Worth adding that the partner is fully reliant on my father financially and residentially.

Just really trying to understand this whole thing along with my brother. It seems unusual or questionable to put these types of decisions in the hands of the person who stands to benefit the most.

A tricky one as we want to respect his wishes but also ensure that they don’t get exploited.

samsam89

Ms_Chocaholic said:

In terms of her continuing to live in the house after your father's death, how old is she? Has your dad thought this through, what if she re-marries.

I’m not sure if he has thought that part through. She is around 15 years younger. What are the implications if she were to remarry? I wasn’t aware there would be any…

gettingtheresometime

samsam89 said:

She will also have the legal right to live in the house indefinitely until she chooses to move or passes away at which point it becomes the property of my brother and I. He also wishes to set something up so that a fund of money remains earning interest that she can live off, but the lump sum then passes to myself and my brother upon her death (not sure if that’s even possible…?)

This seems to be a very reasonable way to set things out as it gives her the security she needs while ultimately ensuring my brother and I inherit from our father in the way he wishes.

I obviously don't know how old this lady is or the length of your father's relationship with her but can I offer you my experience as a cautionary tale?

my FIL also stated in his will that his new partner, that he met following the death of my mil, could do exactly as your father is suggesting. 

He died 5yrs after my mil died & 16yrs later (so more than 3x the max length of their relationship) the woman is still in the property. 

Last October my husband died without seeing a penny of any inheritance from his parents. Potentially his sister could also die without seeing a penny. 

It would have been far easier if my fil had simply left the house to my husband & sil & then let the new partner sue the estate.

samsam89

gettingtheresometime said:

samsam89 said:

She will also have the legal right to live in the house indefinitely until she chooses to move or passes away at which point it becomes the property of my brother and I. He also wishes to set something up so that a fund of money remains earning interest that she can live off, but the lump sum then passes to myself and my brother upon her death (not sure if that’s even possible…?)

This seems to be a very reasonable way to set things out as it gives her the security she needs while ultimately ensuring my brother and I inherit from our father in the way he wishes.

I obviously don't know how old this lady is or the length of your father's relationship with her but can I offer you my experience as a cautionary tale?

my FIL also stated in his will that his new partner, that he met following the death of my mil, could do exactly as your father is suggesting. 

He died 5yrs after my mil died & 16yrs later (so more than 3x the max length of their relationship) the woman is still in the property. 

Last October my husband died without seeing a penny of any inheritance from his parents. Potentially his sister could also die without seeing a penny. 

It would have been far easier if my fil had simply left the house to my husband & sil & then let the new partner sue the estate.

Thanks for the reply. What do you mean by sue the estate? Why would the new partner want or be able to do that? And for what purpose?

elsien

Ms_Chocaholic said:

As an example, if your father lost capacity, his partner could empty his bank accounts and if she is the only one with LPA then there is no one to check up on what is happening.

And if this only comes to light after he passes away and there’s little money left in the estate it will be near impossible to prod anyone to look into it. 

The OPG who oversees LPA is inundated and generally only really carry out checks after a concern has been raised while the LPA is still in force.