Power of Attorney mother spending lots of cash

Scotbot

My 94 yr old mother is spending large amounts of cash,  around £300 or more a week. This is on top of all her bills which are on direct debit and food shopping which I  organise. Each week I give her £200 cash for her cleaner and spending money but she is drawing out at least £100 more.

She goes out regularly  to get her hair done , to a  day centre  run by her church.and for medical appointments .As she cannot drive she gets a taxi. Today I bumped into her in the supermarket. She  has limited mobility so the taxi driver was helping her round .She purchased some sweets,  milk and paper towels   I asked the driver and this trip  cost £20  for the taxi

My suspicion is that she is spending  all this cash on taxis and tips. I am told she tips the hairdresser £10 each week. I  estimate she is spending £800 a month more than her income,  however she has £100 k in savings. 

I have tried to discuss her spending with her but it goes in one ear and out the other. Most of the time she says she will cut down but she never does. She says she is wealthy  and can afford it but she has no idea how much is in her account. She may have mild dementia but apart from lack of awareness re money  she still has capacity 

My question is should I do anything about  it?  I have a financial LPA. And if so what can I do?

MeteredOut

Without wanting to sound too harsh (but probably failing) are you worrying about her, or your inheritance?

£300/week does not sound excessive. If she is enjoying life, and you don't think anyone is taking financial advantage of her (there's no indication in your post that you do think that), then I say good on her for getting out and about at 94!

silvercar

She has 100k in savings and is 94. How many years of going out and about has she left? Why can’t she spend her money? As long as she isn’t being taken advantage of, I can’t see a problem.

flaneurs_lobster

Given that your mother is 94, what would you prefer her to do with her money? With £100K that spending should deplete her savings in 10 years time, seems a reasonable goal to me.

Robin9

I think you are looking this the wrong way -  you should be celebrating her independence, that she is looking after herself , going out and enjoying herself.

Just keep a gentle eye out at a distance.

elsien

If she has capacity around her finances, then there is absolutely nothing you can do about it regardless of the LPA. Her money, her choice.

And if she wants to blow it in her declining years being kind to  taxi drivers and hairdressers, that’s up to her.

If you have concerns about her capacity specifically around her money and her income and outgoings, (because capacity is time and decision specific)  you need to address that by getting a professional to complete a capacity assessment. Which won’t be easy because she would have to accept the need for one, and she would also need to accept the cognitive abilities may be declining. Not something many people want to think about. You say she “may” have mild dementia so I’m guessing that isn’t a formal diagnosis?

And even if she turns out not to have capacity around her spending, if she’s getting out and about and having fun  and can afford it, there’s a strong argument that it’s in her best interest to carry on doing so and living her best life. 

if you paid a carer to go to the supermarket with her, for example, it would cost her more than 20 quid. And it’s priceless in terms of maintaining her independence in simply getting out of the house and having a change of scenery without having to put up on friends and relatives,

Scotbot

I am not worried about inheriting, I have always assumed  her money will be used up in care home fees at some point and I am financially secure

I am concerned that as PoA I have a responsibility to wards her financially  and IMO she is not spending her money well and overtips. But it's her money.

I do wonder how she manages with cash machines and suspect she has help as she is not steady on her feet. But I have no evidence anyone is taking money from her, more likely she gets out £100 and gives them £10 tip. She has aways been generous 

KxMx

If your mother is deemed to have capacity, and does not wish you to get involved in her finances at this point, then having POA is a moot point because it is not active and you have no grounds to activate it on.

As a POA holder at this time you have no authority and no responsibility.

Just because you disagree with how she spends her money, doesn't mean you have any grounds to force any changes. 

elsien

Scotbot said:

I am not worried about inheriting, I have always assumed  her money will be used up in care home fees at some point and I am financially secure

I am concerned that as PoA I have a responsibility to wards her financially  and IMO she is not spending her money well and overtips. But it's her money.

I do wonder how she manages with cash machines and suspect she has help as she is not steady on her feet. But I have no evidence anyone is taking money from her, more likely she gets out £100 and gives them £10 tip. She has aways been generous 

If she has capacity, and the LPA is set up so that you can support her, you support her in line with her directions and what she wants you to do. No more than that. 

If she loses capacity around money then you act in her best interests and part of best interests is what she would choose and how she managed  when she had capacity. Which would appear to be getting out and about and tipping people. Your personal views about whether that’s wise or not don’t really come into it.  

There would  be an issue if she didn’t have enough money, or if she was being taken advantage of. Currently neither of these seem to apply. 

Scotbot

KxMx said:

If your mother is deemed to have capacity, and does not wish you to get involved in her finances at this point, then having POA is a moot point because it is not active and you have no grounds to activate it on.

As a POA holder at this time you have no authority and no responsibility.

Just because you disagree with how she spends her money, doesn't mean you have any grounds to force any changes. 

She does wish me to get involved with her finances and has authorised her bank to allow me to act on her behalf. 

Scotbot

Thanks for the replies, I  accept it's her money and her choice how to spend it.

Going forward if I  feel she is losing capacity does anyone know how I go about getting that confirmed? Who do I contact,  is it social services? I think it unlikely she would agree to a medical assessment.