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Lasting Power of Attorney advice

MadCow1

Hi,

Can anyone advise me please?

My parents are planning for the future & they want me to have Power of Attorney over their finances . This would mean that my details would be registered with their bank & I would have a card with representative on it. Would this effect my UC & any future reviews if we went ahead with this?

Thankyou

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Comments

figraspberry41

Hi Madcow1,

The best advise to you would be to seek the services of a Paralegal or Solicitor. However, having just this week updated my Will, I have taken the advice of the Paralegal who told me that you can set a Lasting Power of Attorney but not register it yet. If I've understood correctly, this way the LPA can be registered at a latter date as and when required but not Register it with Court of Protection as this process is currently £82.00 per LPA (that is one for financial and one for health / welfare. This sum would also be payable every time any changes that need to be made and for each PLA. Having the documents drawn up and kept with the Solicitor Paralegal Company holding the original documents will be able to register the LPA's at a more appropriate time and would not need changing / updating as things change in the meantime e.g. Change of address or needing to change the names of the LPA. You might like to enquire about getting your parents to consider leaving anything that would be bequest to you in a Trust, since as I understand things if inheritance is held in a Trust for you you would not loose your benefits such as PIP because if you were to inherit directly your benefits would automatically stop. I don't know if this 'helps' you but hope that the recent advise given to me is true and accurate at this time (But of course things could change if Government changes the current law). I appreciate this is a costly process, however, you may find it gives both you and your parents 'peace of mind' that you do not loose out due to the current laws and save having the expense every time changes need to be made. I was able for a separate fee) to secure this with a one off fee, so future changes can be made without extra cost (except the £ 82.00 for each when they need to be activated). Good luck!

MadCow1

Hi, thanks for your advice. 👍

Jellihead

@MadCow1

Hi I took out a LPA for my daughter a few years ago and it has been the best thing I have ever done!

My main concern was not the financial implications but her Health and Welfare. During Covid 58% of those who died had a disability. Parents/adult children not being able to be with their loved ones at a time when it was most important. I do not want a stranger being with my daughter when she dies because I have no legal right to be there.

So I have a Property and Finance LPA but more importantly a Health and Welfare LPA. The latter allows me to have a say in what treatment etc my daughter gets. Very important if you have non verbal loved ones.

I would recommend that you get specific legal advice from a knowledgeable solicitor.

MadCow1

Thanks for the advice @Jellihead . We have had legal advice from a solicitor. My main concern is if I have a bank card for their account, would I have to declare that bank account, even though it's not mine?

anisty

Technically, you shouldn't need to as the money in your parents' account does not become yours when you have Pof A. You must keep records of every spend on their accounts and it must be for their use.

However, could it become an issue if your UC account was ever called up for a fraud investigation? Hmmmm. That i don't know!

I think they'd want to know you had access to your parents' accounts but i suspect they have no legal rights to see anything on your parents' accounts (unless there was clear evidence of money transferring in and out of your own & your parents' accounts which looked suspicious)

Best thing would be to check with your solicitor plus DWP i think - to keep yourself in the clear.

You certainly do need to keep excellent records when dealing with your parents' accounts - make sure you keep all receipts and take note of every single transaction.

So i am going to say technically "no" there won't be any need to declare it as the money does not belong to you; you are merely a trustee of your parents' money.

But - in practice - if you ever got into trouble with DWP - hmmm i'm just not sure!

MadCow1

Thanks very much for the advice, it's been very helpful.

Jellihead

@MadCow1

I know how you feel. But it is how DWP/Government make you feel. Do not fall for it. I administer my daughters account directly. For each payment/transfer I make I take it out of the appropriate heading - Holidays, Christmas, Birthdays, Household expenses, Clothes, Travel/petrol/parking, Hotels - our family live far away and can no longer accommodate us at their houses, due to my daughters mental health.

This way if anyone questions how the money is spent and on what they can see where it went as I would no doubt forget!! I am getting on a bit now.

MadCow1

Thanks very much for the advice @Jellihead . I have never been so anxious about benefits since I moved from JSA to UC, I am always scared incase I do something wrong, even though I know I am not, it's just how it makes me feel, because it messes with my mental health.