Financial responsibility power of attorney

[HettyMeg]

Recently had enlightening conversation with a friend whose parents (70s) had downsized and put most of their money into a high interest savings to potentially pay for care home in future. She was very knowledgeable about her parents' finances and had advised them to do this whereas I actually have power of attorney for my mum but I don't know what this entails and have no idea how she is managing her finances and whether I should be broaching this topic with her in some way. I'm not sure if she's considered the future if care costs were involved as she's always said she doesn't want to go into a home, but obviously that might not be realistic.

Just to add I'm an only child and I'm definitely not going to be able to afford a care home anytime soon were it needed.

With financial poa it can be started if mum agrees to you helping or taking over, it will be stated on her poa form when you can act on her behalf. Is she looking after her own finances, paying her own bills. I would check the poa paperwork, if she has capacity just talk to her and suggest you help her, if she lacks capacity you are duty bound to take over her finances and act in her best interests. As a poa you need to read up about your responsibilities, it's essential you know what it entails.

Yes I should have said she's completely independent in that regard, still works, pays bills, looks after all her own finances, but it's more the longer term question I'm now thinking about.

Maybe your friend is particularly good with finances, and her parents were receptive to the advice, that's just how their relationship works.

There is no need for you to be involved in your mother's finances (unless she asks you to) until you need to start using your LPA.

She either has enough money for potential care or she doesn't, but as long as she is compos mentis it is up to her what she does. It doesn't sound from your post as if you have any special financial knowledge you could offer, which is fine - neither do I! I started using my LPA for my mother when I needed to, without any prior knowledge.

Re your second post, you are not obliged to pay for her care so don't worry about that.

You were granted poa so need to know her financial situation, bank details, any benefits, utility companies. You might not need it now but you will if she becomes unable to make a decision. You also need to let her bank know you have poa and her gp if you also have health and welfare where you act if she loses capacity. If she doesn't ever want to go into a home that might be stated on her health pia, her gp can also make a note of any future medical wishes she may have and fill out Respect form

I didn't get involved with mum's finances until she was mid 80s, and took them over completely when she was early 90s mostly because she CBA. Sounds like your mum has many years before you need to get involved; you'd only get involved if she was not able to look after them herself or if she asked you to.

I would make sure you’re on top of what and where everything is - bank and building society accounts, shares, pensions, insurance policies etc.

You never know if something may happen and you’ll need to have a handle on things. My DM always said she wouldn’t go into care, but events have overtaken her in as much as she clearly could no longer cope at home. Fortunately a couple of weeks of respite care has shown her how much better her life is with 24 hr care available.

So we’re taking over organising the financial side of things, but we had put together a spreadsheet with everything on it, and know where the latest statements are for proof of funds for the home. I was asked by the home insurance company if I have POA for instance.

We don’t have the health and welfare POA, but DM has given the GP permission to discuss things with us. We have the English and Welsh versions of RESPECT in place.

If she's currently managing her finances herself without problems then you don't need to be involved. The POA kicks in either when she wants your help or if she gets to the stage of not being able to do it. It's a good idea to know where she keeps things like statements, household bills and insurance documents though should you suddenly need to take over.

You wouldn't be paying for a care home yourself. If it came to it she'd either be assessed as able to pay for it from savings (including sale of house) or if that's below a certain level then the local council pays for it.

www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/

You don’t need to let banks, GPs, etc know you have PoA until the time comes to use it - which for my dad was well into his 90s.

Depending on your relationship with her, you could nudge her on the long term financial planning and suggest that with money in the bank it will be easier for her to buy in help and remain in her home.

You probably don't need to do it yet but go through everything with her and create a document with her PINs and passwords. Save it with a password and/or print off and keep in your safe if you have one.

There are two separate issues here. One is having the POA in place to use if and when needed and the other is financial planning for old age. For the POA it sounds like you don't need to do anything now but it would be useful to know where your mum banks and where she keeps her bill information. The second is really up to your mum but having a chat about her plans and wishes might be useful.