Power of Attorney Gifts

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81974899#Comment_81974899

the person who is subject of the thread has dementia so if he does not have capacity the situation is totally different. If he does have capacity it is his choice what to do with his money

One issue can be is that in the early stages of dementia, people can have good and bad days. So capacity is variable, which can make things tricky. Also the different forms of dementia present themselves differently.

xylophone

Does your father have capacity to understand and agree to a loan to your brother?

How much could your brother afford to repay each month?

Rosa_Damascena

https://forums.moneysavingexpert.com/discussion/comment/81976235#Comment_81976235

That's a conversation the sibling needs with a regulated lender, not a parent without capacity.

xylophone

not a parent without capacity.

You will note that I asked whether the parent had capacity.

If he does not, then the Attorney should not agree to either loan or gift.

If he does, and wishes to assist his offspring, then it seems to me that a formally agreed loan and repayment rather than a gift could be the better option.

Should father die before the loan was repaid, then the debt would be owed to the estate - any legacy could be adjusted accordinly.

Rosa_Damascena

https://forums.moneysavingexpert.com/discussion/comment/81976533#Comment_81976533

Do you not see a moral issue with the sibling attempting to cash in on funds intended to provide the father security during his final years? Shame on them.

When the time finally comes, I can predict their behaviour over the estate will not be pretty.

xylophone

But if father has capacity, does he not also have the right to choice?

And if he does choose to assist, could a documented loan not be a fair option? Of course this does presuppose that the offspring is in a position and can be trusted to repay as agreed in the schedule.

It appears that father has substantial savings sufficient to cover fees for eighteen months and will have the proceeds of the sale of his property.

If the offspring borrowed say seven thousand pounds and could repay over one year, then a loan might be worth consideration?

Pollycat

https://forums.moneysavingexpert.com/discussion/comment/81976617#Comment_81976617

I don't think this is a case of a moral issue.

ElectricCarMan

I would like to thank everyone who has replied to this post, it’s been very helpful.

Sadly my dads condition has deteriorated rapidly over the past week following a fall.

Hopefully others have found the comments of benefit.

Valli

I've skim-read the posts thus far but have seen no mention of 'deprivation of assets'. Should your father need to claim financial support because there is no longer the money to pay the care home fees the gift could be perceived to have been made in order to reduce his estate and enable him to receive support.

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

Rosa_Damascena

https://forums.moneysavingexpert.com/discussion/comment/81977410#Comment_81977410

I am sorry to hear this, unfortunately its all too common. Look after your father and yourself.