Confused relative, possible equity release

[SweetChilliGirl]

I wonder if anyone can advise me. I have an 85 year old elderly relative who is unwell with multiple comorbidities including heart failure
He has been in hospital for about six weeks while they try to stabilise things. We are in the process of trying to organise a care home place for when he comes out.

Most of the time, my relative is lucid but has, increasingly, had periods of confusion.

He has a phone and an iPad with internet access in hospital.

Today, he told us that he has decided to make a very hefty donation to his church and when asked where he'd get the money to do this, told us he had been in touch with people who could help him use his house to do this.

We are worried he is being taken advantage of by an equity release company. He is going to need the money in his house to pay for the care home.

Is there anything we can do? We have applied for power of attorney but it hasn't come through yet and even if it does, can we stop him releasing the equity in his house? I'm so worried he's going to be taken advantage of.

Oh my gosh!!!! Can’t be donation be traced and retracted with explanation?

Please speak to the church and let them know he doesn’t have capacity to make a donation and you’re worried about where the funds have come from
Sounds difficult as you don’t have POA yet and don’t know if the equity release company will speak to you

If your relative is not of sound mind, even without any type of cognitive diagnoses, an equity release company won’t proceed. It’s a highly regulated industry and everyone has to get independent legal advice before it can been agreed too. Even if the ER firm didn’t do proper due diligence, a solicitor would probably advise against it, and the ER firm wouldn’t be able to proceed anyway.

Id be more concerned someone in the church has planted the idea to be honest.

What kind of church - mainstream or some alternative church? Is he prepared to say who these "people" are who will help him to release equity? Can you get access to his iPad to establish who he is in communication with?

Also, you say you have applied for POA, what stage is the application at because he will need to be deemed to have capacity in order to agree to it and it sounds like that time may be passing.

The church isn't the problem - they won't accept such a large donation. Besides, it's not the only place they've said they might offer money to. It's the equity release that is worrying us.

The PoA was done a couple of months ago. He's gone downhill since then, largely, I think due to being given morphine.

You can expedite the poa. I'm in Scotland and the solicitor did it for me but there was a form on the office for public guardian website so I could have done it myself. It was done in days

Has your relative asked you to get involved or given you permission to clarify things for him? Can he give you any details of the equity release? If he’s willing to grant you POA, is there a precedent for you being involved in any of his affairs?

Is your relative aware that he will be going into a care home when he leaves hospital? I’m just wondering what has prompted him to free up / give away cash at this point.

It's all been very vague. Hoping to get some clarity when I see him at the weekend. I think that he thinks he won't be coming out - but hf can be managed and he may well be.

Contact the ER company. They won't be able to discuss any details with you but, under FCA rules, your relative is classed as a Vulnerable Person and all FCA registered companies need to treat them much more carefully, point this out to the ER Company, also check to see if they belong to the Equity Release Council as they may be able to help. If your relative was not of sound mind when they were approached or signed the paperwork then the contract should be null and void anyway.

Trouble is, we don't know who this equity company might be. Or indeed, if they even exist.

Can you access someone elses credit file?

If you can - it might give you a clue who the equity release company is.

Might also be worth asking one of the credit reference agencies to put a flag on saying he is vulnerable likely to stop any mis-selling in the future.

Presumably it would be seen as deprivation of assets when funds are needed for care? Another potential complication

Thank you all for your advice. We think it is sorted. We've managed to expedite the PoA and in a lucid moment, he agreed to give my Dad his cards to look after.