Dilemma - compensation from bank

I have a dilemma. I am on the only sibling in the country.  One sibling does absolutely nothing and the other speaks to elderly parent a couple of times a week via a phone call.

I am POA for parent and I do everything, run their household, am on call for falls etc. Parent is in their 90’s and lives in retirement complex.  

Due to a !!!!!! up with bank I have managed to obtain £15k in compensation.  Both siblings would be clueless as to what to apply for and how to do it. I have taken all the stress, filling in the application for compensation, liaised with the bank etc.  I did mention I was going to claim but it didn’t really compute with them. Just noise from me and no offer of helping or even understanding what I was trying to do.

Parents estate is over inheritance tax threshold by about £200k. 

Who keeps compensation?  Is it part of the elderly parents estate?
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  • pramsay13
    pramsay13 Posts: 1,920
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    Who is being compensated?
  • Marcon
    Marcon Posts: 9,914
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    Bolt1234 said:
    I have a dilemma. I am on the only sibling in the country.  One sibling does absolutely nothing and the other speaks to elderly parent a couple of times a week via a phone call.

    I am POA for parent and I do everything, run their household, am on call for falls etc. Parent is in their 90’s and lives in retirement complex.  

    Due to a !!!!!! up with bank I have managed to obtain £15k in compensation.  Both siblings would be clueless as to what to apply for and how to do it. I have taken all the stress, filling in the application for compensation, liaised with the bank etc.  I did mention I was going to claim but it didn’t really compute with them. Just noise from me and no offer of helping or even understanding what I was trying to do.

    Parents estate is over inheritance tax threshold by about £200k. 

    Who keeps compensation?  Is it part of the elderly parents estate?
    I don't think you do have a dilemma. If the bank messed up on your parent's account and the compensation has been paid in respect of this, the money belongs to them. The fact you have POA makes it very difficult for you to argue otherwise, given the strict requirements surrounding what someone holding POA can do with the donor's cash.

    That must feel a bit of a raw deal, if you are the only sibling in the country and thus 'doing everything'. Have you ever made it clear to your siblings just how much you do, and told them how you feel about the unequal burden? It's easy to fall into the trap of thinking 'well, they must have realised...'. So often people don't, especially when it's more convenient not to consider too deeply.


    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • maman
    maman Posts: 28,374
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    I'm assuming the compensation is because of issues with parents bank account. If so then, regardless of the fact that you did all the running to obtain the pay back, the money is paid into their account?? 🤔
  • Bolt1234
    Bolt1234 Posts: 256
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    Elderly parent who wouldn’t understand what has gone on.  I could have left the compensation claim and siblings wouldn’t have done anything. They leave it all to me which is fine because they live abroad and practically cannot do very much but they aren’t commercially minded or even that interested.


  • user1977
    user1977 Posts: 13,262
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    If it's compensation from the parent's bank because of how they've run the parent's account - why would it belong to anybody other than the parent?
  • fwor
    fwor Posts: 6,799
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    edited 23 December 2023 at 7:57PM
    You refer to inheritance but as far as I can tell, the parent is still alive?

    Your obligation as holder of POA is that any decisions you make and actions you take must be in the interests of your parent and not yourself. So, assuming that the !!!!!-up related to the parent's relationship with the bank, any resulting compensation should be paid to the parent's account.

    What happens in terms of inheritance is irrelevant at this stage. When they are deceased, some or all of that money may be part of the estate - or they might have spent it by then. How the estate then gets settled depends on a number of factors, such as whether the parent's Will has anything to say on the matter.
  • Bolt1234
    Bolt1234 Posts: 256
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    Thanks all. It’s just that siblings do very little and leave it all to me.  They wouldn’t have bothered with any claims.  I asked one sibling to help out with a couple of issues (not about this claim) and they just left it, didn’t chase people or follow it through and I had to step in in the end and finish it off.

    Yes, have made it clear about what is happening and they say thanks and all that but I honestly don’t think they want to think too much about what a burden this all is.

  • Bolt1234
    Bolt1234 Posts: 256
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    I guess my point is if I had not made the claim no one else would have bothered or even been that interested.
  • swingaloo
    swingaloo Posts: 2,642
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    Im confused as according to your post from a couple of days ago your parent has passed away?
  • Marcon
    Marcon Posts: 9,914
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    swingaloo said:
    Im confused as according to your post from a couple of days ago your parent has passed away?
    Father died, mother still alive if you read the 'other' post.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
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