Alternatives to Power of Attorney

margaretclare

Bossyboots wrote:

Unfortunately there are still people like my mum who, despite the money being in their account, trot down to the PO to draw the pension money out!!

I have managed to agree with my mum a set amount to take out each week as at the moment her bills go from two accounts so some has to be transferred. I am going to look at getting the transfer done electronically or move all the bills to the account her pension goes into but time and energy elude me right now.

Bossyboots, how old is your mum? She must be younger than me, surely??? So it's not just a question of 'old people can't change'.

Actually, I've been receiving SRP for a few years now and I've never had it paid any other way than into a bank account.

I've been very very grateful that everything happens automatically. Money arrived in my account this morning (SRP and AA), B's SRP arrived Friday. It was Monday morning and although we had a lovely weekend away, overnight the heavens had opened and it was absolutely tipping it down. And winter coming on, pavements going to be slippery...I sat here and looked out of the window and thought how lucky we are!

Aunty Margaret

Bossyboots

My mum is 69 but does have some difficulty with literacy and numeracy. Also, while my dad was alive he handled all the finances so she did not have to worry about itI have had to teach her to write a cheque which she will now do, but only with me to supervise. She is doing well though. I am trying to teach her what to do, rather than taking over and she has surprised herself with what she has learned. She did not resist the idea of her pension being paid into her bank although she took some convincing not to withdraw the whole amount in one go.

The main thing at the moment that we can't get across to her is paying her TV licence by direct debit, she still insists on buying stamps. However, all her other bills are paid DD so thats one less thing to worry about. She stills pays for her shopping in cash as well.

margaretclare

Hi Bossyboots

You deserve to be commended for teaching your mum rather than taking it all over.

It wsn't like that for me - I'd always worked and so was well used to getting paid into a bank account. The only thing that has changed of recent years is being able to do it all electronically.

Good luck to you and your mum!

Aunty Margaret

Bossyboots

Thanks Aunty Margaret.

My mum did work up until about four years ago. Right up to her last pay day, she was paid in cash which was put in a little brown envelope!

bargainaddict

My 85yr old MIL recently asked my husband to get POA for her. The solicitor charged £60 and the doctor had to see her to decide if she understood what she was doing. He charged £72 for the privilege! Unfortunately he decided she did not understand the matter properly so we could not continue, otherwise the solicitor costs would have been more. Our only option now is to to the court of protection which will cost about £600. She has never had a bank account and doesn't really understand financial matters, so we have had to sort out everything DD from the bank and had to put hubbys nane on the savings book so we don't have to take her on a difficult trip into town to get any money.

If you can get POA I would suggest sooner rather than later, it is much more complicated and expensive if the doctor has any doubts.

margaretclare

bargainaddict wrote:

She has never had a bank account and doesn't really understand financial matters, so we have had to sort out everything DD from the bank and had to put hubbys nane on the savings book so we don't have to take her on a difficult trip into town to get any money.

I think this might be the crux of the problem, not simply her age but the fact that she's never had a bank account and as you say 'doesn't really understand financial matters'? Would this be a fair assessment of her situation?

There are still women around who allowed husband to make all the financial decisions, drive the car - and they are often left in a right hole if/when he dies before them. I've seen it so often! Even among those who should know better. I used to have a colleague when I was still going to CAB, wife of a retired bank manager, she still gets housekeeping money paid into her account, which she goes and draws out to do the shopping, pay the papers and the milkman. Husband deals with all else.

Most of our DDs go out either on the first of the month or in the first few days. It really is a load off your mind knowing that will happen. I'm due for hospital admission on the last day of this month. B and I both fund the joint account at the end of the month, and on the first of December it will all happen again, I won't have to worry about it while recovering from major surgery.

Aunty Margaret

bargainaddict

Yes, that sounds fair. The doctor left it so long to visit her after the initial visit from the solicitor and she wasn't expecting him, it rather threw her. Consequently she came over as not understanding the implications. When we took her to the bank she just said to my husband, you sort it, I don't want to worry about it all. We haven't told her what the doctor has said, she will think she is going senile. She has memory loss but she is with it enough to tell everyone around her she wants her son to sort everything. Wish we had done it when it was first broached months ago.

Daisynook_2

My 84 year old Mother has always liked to keep control of her own money, even though she doesn't understand the whys and wherefores of interest rates. Her accounts are all in low interest places but I can't move them for her. She has now got to the point where she is house bound. All her DDs are done from the bank, I arranged that some time ago and we have one joint account so I can pay her carers, but she still refuses POA and wants to keep hold of her own bank accounts. What is the answer?

margaretclare

Daisynook wrote:

My 84 year old Mother has always liked to keep control of her own money, even though she doesn't understand the whys and wherefores of interest rates. Her accounts are all in low interest places but I can't move them for her. She has now got to the point where she is house bound. All her DDs are done from the bank, I arranged that some time ago and we have one joint account so I can pay her carers, but she still refuses POA and wants to keep hold of her own bank accounts. What is the answer?

Well, she understands it sufficiently to understand the value of DDs.

I can completely understand your Mother's point of view, even though you and I agree that a higher-interest account is better than a low-interest one.

It sounds as if everything is working OK at the moment so if it ain't broke, why fix it?

Aunty Margaret

Dora_the_Explorer_5

Hello Daisy - I hope this helps. You say "My 84 year old Mother has always liked to keep control of her own money, even though she doesn't understand the whys and wherefores of interest rates."
If she is unable to understand interest rates then it would seem there is a problem as understanding them is completely straightforward. Power of Attorney has to be done whilst your mum can still understand what it means, however it doesn't come into operation once it's registered as you and she can agree what will trigger it, for instance on the advice of her doctor who will be able to judge very well if your mother is capable of managing her own affairs. This means that if she's capable right up to the day she dies it will never come into operation.
POA could be very useful to you and your mum if she owns her own home and needs to go into residential care and her home has to be sold. If she can't understand interest rates now can you be sure in your own mind that she will be able to understand how to deal with the sale herself, even with your support, should it become necessary? Do you have brothers and/or sisters? If so, perhaps you could discuss this with them?
Good luck - Dora