LPA queary for parent in a home!

P933alilli

Hi, i have a financial lasting power of attorney for my elderly Mum who is in a carehome. I manage her account and make payments to the carehome each month. However the account is earning no interest at all. Would i be allowed to either a. Open a new account for her or b. bring a lump sum from it into my easy access account which earns 4.35%? I'm thinking i would be allowed to open a new account but assume i would then need to send copies of the Lasting power of attorney as part of my application, and this may take some time? It would be much quicker and easier to bring the money over to my account , manage it , and work out the proportion of interest that Mum's money earned each month...if i'd be allowed to do it!  Thanks!

p00hsticks

I'd open in a new account in her own name - moving it across to one in your own name could be seen as an abuse of your powers as POA

Keep_pedalling

Have to agree, keep the money separate. Presumably you have already registered the LPA with her current bank so why not open an interest paying savings account with them?

The main danger of putting her money in your account is the financial mess this would cause should anything happen to you. There is also the issue of the tax you would have to pay on the interest.

RAS

I assume you have already been to the bank to register the LPA? If not, you need to do it. You may need an appointment and will need your personaI lD. 

Once that's done, you should be able to open a savings account in your mother's name. You may want two, instant access for a year's worth of fees plus a little, and a fixed term for the rest. If she's more than £85k, you'll be best advised to open more accounts with another bank.

P933alilli

Hi, thanks for the replies! The LPA is registered with Mum's bank and i also have a card for Mum's account in my name but the particular banks terms on the easy access accounts arent suitable. So, it looks like i'll have to open one with another bank and go through various hoops. I have a sister who is joint attorney. It would be so much easier if i were able to transfer the lump sum into my account but if it isnt allowed then so be it. It isnt a huge amount and wouldnt incur any tax!

RAS

Being a joint attorney can be problematic. Can you act jointly and severally?

P933alilli

RAS said:

Being a joint attorney can be problematic. Can you act jointly and severally?

Yes, thats how we're set up!