Mum taking lots of money out of her account

[Yoohoo778611]

At long last my brothers and I have access to mums bank accounts.
She was diagnosed with dementia over 12 months ago but still able
to go out on her own.
It's taken a while to get POA for health and finance.
Mum has always been secretive about money.
The first bank statements have come through and for over the last 18 months
she has been taking out £500 per week.
Our worry is
A) where is this money
B) tax implications
C) inheritance tax
D) she might need to go in a nursing home sooner rather than later.
When we have quiered it with her she has got aggressive which is part of her dementia now.
Can we speak to the bank and stop her debit card. We have tried to get the debit card
off her but she is adimant that we are not to take it.

I think you might re-post this on legal matters.

I'm a bit surprised if you have succeeded in getting a PoA recently if she has been diagnosed with dementia a year ago, unless you actually got a deputyship through the Office of the Public Guardian OPG).

But if you have then I guess you now have control and the bank should accept your instructions. Have you registered the PoA with the bank?

I will post on the legal site.

Speak to her bank. I used to work in the legal department of a bank in ireland and we had a legal duty to protect clients who we had been informed had impaired cognitive ability by restricting their access to cash. However, I can’t see your reasoning about the impact on inheritance tax or any other tax implications. Can you explain further?

When a similar thing happened with my stepfather, my mum went into the bank and spoke to the manager, they changed the account to a joint account and put a limit on his debit card use.

Have you checked the money isn't in the house? An elderly relative done this regularly (until lockdown) as he thought he needed cash for bills etc as he forgot they were direct debits now. The money was found in drawers about the house.

This is my first thought. You can’t get POA after capacity has been lost.

Hi. The most important thing you can do pronto is to tell her bank she has a formal dementia diagnosis, you are very concerned and make sure you keep proper records of you telling the bank.

Agree with above. Check the house. Fully. Mattress, floor boards etc.
assume youve applied for power of attorney?
youd have control over financial assests etc and be able to speak to the bank etc.

We managed to get POA for my mum a few years into her dementia. The doctor talked to her and my dad and agreed that she understood what she was doing. Nothing underhand about it.

@BeeLady15 it might be an issue if it looks like deliberate deprivation of assets maybe?

Withdrawing in smaller sums in Cash over a period of years, then slipping it to a beneficiary might seem like a good way to appear less wealthy and avoid paying care home fees, or avoid inheritance tax.

Other than the concern that she's hoarding money in the house and the risk of loss/theft, there's also the worry that she's being conned by somebody.

She doesn't have any helpful 'handymen', gardeners, cleaners or someone else who might be taking advantage and overcharging her for services like these?

£500 a week for 18 months, that's a lot of money that's gone somewhere

My first thought was is she being pressured by somebody, a con man type thing. You really need to try and find out where it's gone

A friend of ours has the exact same problem - the mother has a formal diagnosis of dementia. She was became very angry and agitated when the daughter - who has Lasting Powers of Attorney for finances has tried to have the conversation about why the mother takes so much money from her account on a weekly basis - it turns out that the mother is spending her time gambling on slot machines - £20+ a day 3-4 times a week. The daughter has arranged with the local branch of the bank to not allow her mother to take money out - the daughter takes an agreed amount of money out of her mother's behalf every week - it's been a very difficult issue to deal with and caused a lot of friction, upset, mistrust, anxiety etc. The mother has become irate and angry at staff in the bank as well as mistrusting of her daughter. The mother has also misplaced cash she has taken out and hidden around the house - the daughter has inadvertently come across some of the money which the mother has suggested had been stolen - the inference being that it was her daughter - it's a source of friction between them. Among the many concerns are that the mother might need some money to help pay for her own care at some point in the future and she will also need to make sure she can cover the cost of her bills. It is her money and frankly - she is lonely and the trip out to gamble is something she is still able to do - it is a habit she has managed to keep from her daughter - it's been going on for decades apparently.

My DSis has had dimentia for years. After some time us siblings appointed another DSis as POA by using a lawyer. So that's not fact @ENoeuf