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Original poster

MIL in care home - change in circumstance...

82 replies

CactusMactus · 22/05/2024 16:37

MIL is currently in a state funded care home. She has recently inherited money from a relative that has passed away.
DP and his brother want to move the inheritance out of MIL's account. They have power of attorney and financial control.
She does not need this money and wanted to leave something to DP, BIL and grandkids - so they would just be taking it before she dies (sorry to be blunt, but trying to be factual).
Can they do this?

OP posts:
statetrooperstacey · 22/05/2024 16:39

Would it not be deprivation of assets ? I think they would be on shaky ground tbh

Sunnysummer24 · 22/05/2024 16:40

No, it will be a very clear case of deprivation of asserts. If she has not yet received the money you can ask the executor of the will to vary the will and divide her share between her children - this is still morally and legally questionable but less obvious paper trail.

Allthegoodnamesarechosen · 22/05/2024 16:43

If your MIL now has the money to pay for her care, legally (and morally, some might think) she should do so.

Your DP and his brother will be misusing their power of attorney if they ‘move the money into their own account’ for no other reason but that they want it for themselves. They are supposed to act in their mother's best interests, which in this case, should be using it for her care. What they are intending is either fraud or theft .

Smartiepants79 · 22/05/2024 16:43

Fairly sure it’s not legal. Power of attorney does not give you license to steal the persons money which is essentially what they would be doing if they just take it out of the account and give it to themselves.
Power of attorney allows you to control the assets to benefit the owner of them. Like paying for care homes……
It is also deprivation of assets even with her explicit consent.

MissAtomicBomb1 · 22/05/2024 16:45

Some of the state funded care homes we looked at for MIL were absolutely dire. Truly grim. She passed away before we needed to move her.
Obviously I don't know if this is the case here but in our situation we'd have used the cash to fund better care for her.

Womblingmerrily · 22/05/2024 16:47

So your DP wants me and others to pay for his mother so that he can get the money instead. - nice.

It needs to be declared and assessed for her care. She will be able to keep some, but otherwise it will pay for her care home - so her rent, food, utilities etc as well as the care.

Why on earth should she not pay for these things when she is able?

Original poster
CactusMactus · 22/05/2024 16:47

The care home she is in is lovely, she is settled. The money would not go to move her.

Is there a limit on money she is allowed to give away? What is the threshold of savings she needs to have to start paying for care?

OP posts:
mitogoshi · 22/05/2024 16:48

Depends on the amount of money and how she's having her care funded. If it's over £23k (check amount it may have changed since I last dealt with this) and she's funded by her local authority then she will need to fund out of the inheritance until the amount drops below. If she is funded by nhs continuing care, it is not means tested so not relevant. They can legitimately spend money on her such as clothing, funding a holiday with carers etc but not give it away beyond the normal cost of gifts in a given year (eg fine for her to "buy" a normal bike for the grand kids on birthdays but not you a new car

CurlewKate · 22/05/2024 16:49

Is there a reason he isn't consulting a solicitor?

titchy · 22/05/2024 16:49

Can they steal their mother's money. No. Obviously.

Savings over £27k means she has to pay for her own care.

Original poster
CactusMactus · 22/05/2024 16:51

CurlewKate · 22/05/2024 16:49

Is there a reason he isn't consulting a solicitor?

Because he's a dumbass and wont listen to me when I said that is what he needs to do!

OP posts:
TCThree · 22/05/2024 16:54

If the money is above the threshold and she does need to self-fund care then something that you could consider is pre-paying a funeral plan, if she doesn't already have one.
That could be classed as a legitimate spending of money on her behalf.

Alwaysalwayscold · 22/05/2024 17:00

We need to know the amount to advise.

msbevvy · 22/05/2024 17:02

Does she have capacity? If not, under the Power of Attorney there is no way any money can be gifted to anybody apart from small amounts to cover birthday presents for people that she would usually have bought for.

Original poster
CactusMactus · 22/05/2024 17:10

I think around £100k
She does still have capacity.

OP posts:
Fizzadora · 22/05/2024 17:13

I think it depends on her care package. If she is fully funded because of her care needs, rather than her financial situation, then this will not change.

fortunetellingwizard · 22/05/2024 17:24

Ask a solicitor if MIL can sign a Deed of Variation for the will. My husband did this in order to allow an inheritance to pass tax free to our offspring, instead of taking it himself. It's quite legal in our case. But check it out properly re your MIL.

Rainydayze · 22/05/2024 17:29

Legal advice is needed. Even varying the will by a deed of variation can be seen as a deprivation of assets from a benefits point of view.

titchy · 22/05/2024 17:38

CactusMactus · 22/05/2024 17:10

I think around £100k
She does still have capacity.

Then she'll have to pay the fees out of it.

Beamur · 22/05/2024 17:38

Sensible advice here
https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/
Even with POA you have to be able to justify any spending of the person's money. If she has capacity she can make gifts. I think it's something like £3,000 you can give tax free if it's surplus income. In reality the chances of paying inheritance tax are slim if you gift more, it depends on the size of the estate.

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets

titchy · 22/05/2024 17:39

As to how much she can give away - the same amount as she has given away for the last few years. Otherwise the LA will regard it as a deprivation of asset situation.

No wonder your dh wants the cash though at that amount.

YorkNew · 22/05/2024 18:51

The money will be used for her care home fees, she’ll be entitled to her full state pension (instead of the small amount she can keep now) and I would have thought Attendance Allowance.

TizerorFizz · 22/05/2024 22:34

You can get attendance allowance if you self fund.

Fifthtimelucky · 22/05/2024 23:37

Of course they can't do it.

Your mother in law does need the money because she will now have to pay her care home fees.

This exact thing happened to my mother in law. She was living in a care home, and was funded by the council until she was 90, at which point her older sister died, leaving her some money.

My husband had power of attorney for his mother, but he couldn't move the inheritance out of his mother's account and take it for himself.

The inheritance was used to pay the care home fees for a couple of years until she died, at which point my husband inherited what was left.