Thank you. The money in the
bank account belongs to your mother and not to you, even though it is in joint
names. Your name on the mandate simply gives you the authority to use it. What
is your mother is no longer capable she is no longer capable of giving you the
continuing authority to use it, and you should stop using it. Although many
people do carry on because it is quicker and cheaper than applying for a
lasting power of attorney. If you apply for a lasting power of attorney now,
while your mother is mentally able, it will cost about £500 for a solicitors do
it. There is no legal reason why you cannot do it yourself, the paperwork is
full of traps for the unwary. If your mother gets dimentia and is no longer
mentally capable of looking after her own affairs, then you need to apply to
the Court of protection to become a deputy and that is going to cost you £2000.
The delay is costly.
As I said earlier, the money
in the bank account belongs to your mother and forms part of her estate and
therefore your authority to use it also ceases on her death. About the only
thing you can pay from that account after her death would be the funeral account.
I am giving you of course, the
absolute letter of the law here.
As your mother, by giving away
this £15,000, would be depriving herself of over 50% of her liquid assets/cash
then if it is needed for care, the local authority may want the money back.
The local authority were
currently take all the value in the estate. Apart from the last £23,000, which
is why many houses have to be sold to pay for care.
In short, your mother can give
the money away and it would lift the local authority to decide whether she had
deprived self of assets to avoid paying care fees. They would of course sell
the house and spend all the proceeds but that obviously takes time. It would be
for the Council to decide whether they wanted their cash now, or whether they
wanted to wait until the house was sold.
Can I help further?
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The thread remains open.