Mums finances. Sister thinks I am up to something.

scatmanjohn

flaneurs_lobster said:

scatmanjohn said:

flaneurs_lobster said:

Explain please how it is in your Mother's best interest to pay off any or all of a lifetime mortgage?

It’s more of a legitimate way to reduce her savings so it doesn’t affect the pension credits. 

Do you think it’s not in her best interests?

If you just want to reduce your Mother's savings to £10k (the limit where pension credit isn't affected) then why not spend it on a decent holiday? Why pay off a mortgage that your Mother will never need to repay?

She doesn’t do holidays or drive and the money will continue to build and in time will affect the pension credits.  

kimwp

Hmm, if your mum has more than she needs/wants to spend, than I can see your sister's point about there not being much point in optimising your mum's finances with higher interest rates.

But at the same time, it seems silly not to - and avoids the hassle of stopping and restarting the pension credit as her savings go over and under the limit. (Assuming this is what happens). 

It doesn't seem underhanded to me to do the things you have done/propose:

- pay off debts to keep under the pension limit
- keep a sum of money for house repairs (and fun things!) in an interest bearing account.

Reducing interest on the lifetime mortgage is irrelevant to your mum's situation unless it's type where she is paying the interest now, but if it's the only debt she has, that's the one to pay.

Sea_Shell

I don't see a problem...yet.

However, do you have (or is mum planning) power of attorney for her finances?

As, if she did lose capacity, you can't* just carry on using her internet banking logins to do stuff for her!


* Shouldn't...but people do.  But you've got an insistent sibling to contend with.

p00hsticks

scatmanjohn said:

flaneurs_lobster said:

Explain please how it is in your Mother's best interest to pay off any or all of a lifetime mortgage?

It’s more of a legitimate way to reduce her savings so it doesn’t affect the pension credits. 

Do you think it’s not in her best interests?

I'm not an expert on benefits but if she ha savings of £21k I would have thought that that would potentially already have affected her Pension Credit - does she not have to notify them when savings exceed a certain amount  ?

ButterCheese

scatmanjohn said:

 my sister is not happy about 

You have said that your mum is sane and can use the banking App without issue.  So I do not see a problem.  Your sister (I'm just assuming here) is not happy because she feels she is/has been the main carer, and because she didn't have the idea to set your mum up into a better financial position, her nose is out of joint.

You have presumably not coerced your mum into doing something she didn't want to do.  So it's really just a trust/attitude problem.  And it is only your sister's problem, which you cannot control.

Tell your sister you had your mum's interests at heart, and she accepted the advice and help you gave her of her own free will.  Your sister will either let it go, or will try to convince your mum to undo everything that has been set up.  Those are the only two options.  She may well remain spikey with you, but at the end of the day your mum is free to act on any advice given and it's her choice to accept what you have set up for her.

I cannot comment on the prudency of what you have set-up because I know nothing about it

badmemory

Is she likely to need a stair lift or bathroom modifications in the near future.  Hearing aids that she may (only may) need to pay for.  I would look at things like this before tying the money up elsewhere, otherwise I would think carry on.

scatmanjohn

Sea_Shell said:

I don't see a problem...yet.

However, do you have (or is mum planning) power of attorney for her finances?

As, if she did lose capacity, you can't* just carry on using her internet banking logins to do stuff for her!


* Shouldn't...but people do.  But you've got an insistent sibling to contend with.

Thanks. Is going to be a conversation a some point.  Not sure how it would go down with my sister but I would rather we could do it between us amicably.

scatmanjohn

badmemory said:

Is she likely to need a stair lift or bathroom modifications in the near future.  Hearing aids that she may (only may) need to pay for.  I would look at things like this before tying the money up elsewhere, otherwise I would think carry on.

Thanks. She already has a stairlift and walk in shower. She has NHS hearing aids . All good shouts though.

scatmanjohn

ButterCheese said:

scatmanjohn said:

 my sister is not happy about 

You have said that your mum is sane and can use the banking App without issue.  So I do not see a problem.  Your sister (I'm just assuming here) is not happy because she feels she is/has been the main carer, and because she didn't have the idea to set your mum up into a better financial position, her nose is out of joint.

You have presumably not coerced your mum into doing something she didn't want to do.  So it's really just a trust/attitude problem.  And it is only your sister's problem, which you cannot control.

Tell your sister you had your mum's interests at heart, and she accepted the advice and help you gave her of her own free will.  Your sister will either let it go, or will try to convince your mum to undo everything that has been set up.  Those are the only two options.  She may well remain spikey with you, but at the end of the day your mum is free to act on any advice given and it's her choice to accept what you have set up for her.

I cannot comment on the prudency of what you have set-up because I know nothing about it

The only thing I have done and with her full agreement is set up internet banking with Halifax bank on her phone. This allowed easy set up of a savings account with Halifax . Could have got a much better rate going somewhere else but thought it would be better that she can see all her money on one app . The payment of the lifetime mortgage is just a suggestion at the moment to help protect the pension credits.

scatmanjohn

p00hsticks said:

scatmanjohn said:

flaneurs_lobster said:

Explain please how it is in your Mother's best interest to pay off any or all of a lifetime mortgage?

It’s more of a legitimate way to reduce her savings so it doesn’t affect the pension credits. 

Do you think it’s not in her best interests?

I'm not an expert on benefits but if she ha savings of £21k I would have thought that that would potentially already have affected her Pension Credit - does she not have to notify them when savings exceed a certain amount  ?

Yes it does reduce the amount she gets that’s why it needs lowering. Every £500 above £10k is classed as £1 per week of income when they work out the amount