Advice needed please

[PeggySmith]

This is a tricky one. MIL has two sons living near her who see her every day as do we DILs. Since MIL has needed more help, BIL has demonstrated that he doesn't ever really understand what's going on.

We've just sent off the forms for LPA which took ages to complete as BIL always wants to be in charge without understanding what needs to be done. (it's a separate story which would take ages to tell)

He just rang my OH to say he's going to ask his financial advisor for advice about MIL's house. When FIL retired 20 years ago he took out a loan against the value of the house. Of course the interest gets to be more every year and it's not a very good thing to have done. However, BIL wants MIL to sell the house to him and his brother - nothing fraudulent he just wants the loan company to go away. BUT he thinks he can do it without telling his mother Does anyone out there have any suggestions for tactfully telling him that what he's proposing is illegal?

PS Like many people with dementia, MIL is utterly paranoid about being "put into a home". She'd go ballistic if anyone told her what he's planning.

[jenniferpa]

It's the "tactful" part that I'm having difficulty with. Hmm - you could simply tell him (because it's true) that when a family member purchases a property from a person without capacity and where there is an LPA in force and person doing the purchasing is an attorney, the court will expect another person to be appointed to watch out for the family member's interest.

To be honest, what he's proposing (assuming MIL no longer has capacity) is not strictly speaking illegal, provided it's a reasonable step for the attorneys to take (and it might be if the interest payments are a strain). As an alternative, how about he and his brother purchase the loan from the loan company?

[PeggySmith]

Oh, thanks Jennifer I didn't realise that's a possibility. It would make him happy and she wouldn't need to be involved.

She hasn't lost capacity, is just a little vague about money but is fully aware of the LPA and doesn't see any need for it to be actioned yet

[jenniferpa]

Well I suppose it's down to the loan company as to whether they are willing to sell it on. It might be necessary to do it rather differently in that they would need to formally loan MIL the money to pay it off (placing a lien on the property).

You could point out to BIL that the code of conduct for attorneys does require them to consult a donor about what they should do if at all possible and it sounds as if your MIL is capable of such consultation.

[PeggySmith]

She certainly is capable of being consulted but she'll almost certainly take it as a "plot" to move her into a care home. Anyway, thanks for the idea. We're going to have a family meeting and we'll try AGAIN to explain what being an attorney means. Not that he is one yet

Thanks again for the advice.