Can you please explain your concerns?
Can I transfer money that she wants to give to her great grandchildren out of her account so it will not fall into the means testing?
Is she in the habit of making these gifts?
Do you mean escape care fees?
How much are you looking at giving away?
She has given money to her grandchildren and myself in the last year and wants to share £15000 between her five great grandchildren
How much does she have in cash/savings?
I need to know exactly why she is doing this. To escape what?
Means testing for what?
As it looks like she is in need of some care ,if she goes through social services they will means test her to see if she can get help with the cost- she has £16000 in her current a/c and 13000 in her savings a/c- she also owns her flat wich is probably worth about £100000/120000 I am not sure if they take this into account when means testing. If she passed away could I still operate her bank a/c as it is in joint names?
Thank you. The money in thebank account belongs to your mother and not to you, even though it is in jointnames. Your name on the mandate simply gives you the authority to use it. Whatis your mother is no longer capable she is no longer capable of giving you thecontinuing authority to use it, and you should stop using it. Although manypeople do carry on because it is quicker and cheaper than applying for alasting 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 doit. There is no legal reason why you cannot do it yourself, the paperwork isfull of traps for the unwary. If your mother gets dimentia and is no longermentally capable of looking after her own affairs, then you need to apply tothe Court of protection to become a deputy and that is going to cost you £2000.The delay is costly.
As I said earlier, the moneyin the bank account belongs to your mother and forms part of her estate andtherefore your authority to use it also ceases on her death. About the onlything you can pay from that account after her death would be the funeral account.
I am giving you of course, theabsolute letter of the law here.
As your mother, by giving awaythis £15,000, would be depriving herself of over 50% of her liquid assets/cashthen if it is needed for care, the local authority may want the money back.
The local authority werecurrently take all the value in the estate. Apart from the last £23,000, whichis why many houses have to be sold to pay for care.
In short, your mother can givethe money away and it would lift the local authority to decide whether she haddeprived self of assets to avoid paying care fees. They would of course sellthe house and spend all the proceeds but that obviously takes time. It would befor the Council to decide whether they wanted their cash now, or whether theywanted to wait until the house was sold.
Can I help further?
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In my mother-in-law's will my son and daughter and myself are the executors would I still need a power of attorney to deal with her estate?
Thank you. You only need power of attorney or deputy shipto deal with your mother's affairs while she is alive. After that, they aredealt with by the executors who, if disposing of a house or substantial assets,will need grant of probate