Abuse of POA?

[Worrieds1ck]

Hello. Apologies in advance for the long post but the detail is necessary for the full picture.

My parent has vascular dementia. They are still living in their home with their spouse (my step parent ('SP')). Their memory has got really bad; they no longer remeber what they did the previous day and often can't remember things that happened an hour ago.

SP, my sibling and I have power of attorney ('POA'). These have been registered but we have not started using them yet or sent copies to banks etc.

Several months ago, I discovered that Parent had put one of their savings accounts into joint names with SP 'to save tax'. This was concerning as we know they would never have done this previously. Parent was very shrewd when it came to financial matters and was keen to ensure that their assets would pass to their children via their will, while SP's would pass to their own children. I highlighted this to them at the time and was given short shrift by SP who said that we would be getting enough as it is. Sibling and I decided to overlook it this once on the basis that SP would be doing a lot of the caring but explained that big financial decisions needed to be discussed by us all.

Recently, SP announced that parent wanted to gift us some cash for us to enjoy now, so they have sold some assets and that they would transfer the cash to us. Sibling and I were shocked because, again, parent does not have the capacity to make this kind decision, SP did not discuss this with us before and also, as POAs we can't possibly benefit from gifts.

The money has appeared in our accounts and it amounts to tens of thousands of pounds each. We are both worried sick. Firstly that if we keep this cash we will be committing a crime; and secondly, what else is SP persuading parent to do with their money that we don't know about?

Sibling thinks that SP genuinely wants what's best for us, even though they are going the wrong way about it. I am more suspicious and think that the cash to us is some kind of 'softener' so that if we discover they have been putting more assets into joint names or making gifts to their own children, they would point out that we have had plenty anyway.

I just don't know what to do next or how to stop SP making these kind of decisions.

For completeness, parent's will includes a decent lump sum to SP in the will. House is held by the two of them as tenants in common and SP has a life interest in Parent's half on their death, which will pass to Sibling and me on SP's death. SP's half will go to their own children.

I would point out to SP that moving your parent’s money around now they have a diagnosis of dementia could be seen as deprivation of assets should they need to go into a care home, and that the money they’ve sent you must be returned to an account in your DPs sole name.

I would get advice from the OPG and solicitors but ultimately as the LPOAs you are responsible for protecting your parent's financial interests and at the moment it doesn't sound like you are doing that.

Definitely don't keep any money that has been gifted to you from parent. That needs to be returned to an account in their name and firm words had with step parent - how are is the SP able to access finances, assets etc to do this kind of thing anyway if you hold the LPOA?

It suggests you perhaps need to use your LPOA a bit more proactively and start to properly separate and ringfence finances for your parent if this is what their wishes would have been.

What conditions were you registered under as POA

1. Each can act alone or
2. Must act together. It makes a big difference here.

Why have you not gone to banks etc and registered the POA so you can use it? If your father no longer has capacity you are not protecting him and he gave you the power to do so.

You can and should alert the bank and office of public guardian about your concerns about the actions of your step-parent. You have allowed her to take actions that benefit her significantly financially. The money in the 'joint' account now legally automatically becomes entirely hers.

I agree, return the money with a strongly worded letter. The more of a paper trail you have the better.

Establish whether you are joint or joint and several Attorneys and start being active Attorneys. If you can get any of your parents accounts changed to oA accounts requiring at least two Attorneys to sign before any funds are released.

It is at times like this people show their true colours.

Firstly having dementia does not mean someone has lost capacity. Your parent can have dementia and still have the capacity to make this judgement. Have they actually had a capacity assessment completed by a medical professional or a social worker and deemed to not have capacity? In which case yes you would need to be careful about having received these funds and transfer them back. It could possibly be seen as deprivation of assets if they do not have sufficient other means available to pay for care.

Step-parent although POA is their spouse so a joint account is not necessarily problematic if your parent has capacity and jointly agreed to this with the bank. People are allowed to change their minds and also make what we might consider unwise decisions that contradict earlier decisions.

https://mental-capacity.co.uk/example-mental-capacity-assessments/

Secondly the property and finance POA may be able to be registered and used straight away even if they still have capacity with your parents consent. If they agree you should do this ASAP so you can have oversight. It would also be worth sitting down with the step-parent who is also LPOA and explaining the duties of POA to them so it is very clear.

large gifts often need consent from the OPG as it can be beyond the attorney’s authority. You can report attorneys to the OPG and they will conduct an investigation if they think there’s been any misuse of the LPA. I would give them a call, they’re a helpful institution usually and can advise on next steps