Advice re buying a house and finance issues

[Imogenlily]

So I'm in a complicated situation and could really do with some advice.

My mum was recently diagnosed with Mixed Dementia (Altzheimers and Vascular) but we've suspected for a while. Me and my brother are now her Lasting Powers of Attourney. I live with my mum and am gradually becoming her carer and also my stepdad who has mobility and memory problems but no diagnois. Neither are in good shape. Before mum had dementia we previously discussed buying houses with money we got after my sister died seven years ago but my mum couldn't handle finances and left everything to my stepdad (very secretive about money and won't talk about it) and things just got shelved.

Since mum's diagnosis me and my brother are worried we'll end up spending the insurance settlement on care etc for mum and if then she needs further care or a home, there won't be any money left (she doesn't have many savings and I'm on ESA)

Because of this and potential future care costs (live in carers, nursing homes etc) me and my brother decided to get a property to rent out that's next door to him so it would give us a bit of income for future bills etc. My mum has some money for an insurance settlement after my sister died in a car crash, she previously said she wanted the money to help me and/or my brother. At the beginning of her dementia she started getting paranoid and insisted on transferring the money to my brother (she thought my stepdad was stealing from her and he has been in serious debt before) but we has to transfer the money because she's not good with computers. We only realised it was possibly dementia several months later (I thought she had PTSD because of my sister's death)

Me and my brother have found a house (next door to him) and we are talking to the conveyance and they are insisting they talk to mum to check if she gave the money freely or if we 'badgered' her into it. Problem is I don't know what mum remembers and we've learn money is something that really stresses/upsets/confuses her if we talk about it (I organise her money, pay for things for her etc) We've explained our situation to the conveyer for the house who is now having to talk to her lawyer firm as they can't be sure the money was given of mum's free will. I feel like me and my brother are being painted as the bad guys. The only reason we wanted to get a house was to find a way to get some income as a protector for any future care needs for them both - aside from our house and the insurance payout we do *not* have a lot of money and some has already been spent on house repairs etc.

Prior to this my mum and stepdad never discussed money with any of us, so we're completely in the dark about their finances etc and my stepdad has always handled the money and stonewalls about everything- problem is he now has memory problems too and we can't ask either mum or my stepdad about finances.

I'm just worried this conveyencer and the law firm will just think me and my brother are trying to take money from mum/trick her into something.

 

[Grannie G]

Hello @Imogenlily

I doubt you will be able to do what you plan if your mother has now lost capacity and you are concerned she will be unable to give the right answers if interviewed.

The LPA is to ensure you are acting in your mother`s best interests and this may be in doubt

To clarify your position it might help if you contact the support line.

Dementia Support Line

If you need dementia support, we’re here for you. Get personalised information, support and advice by calling us on 0333 150 3456.

www.alzheimers.org.uk

 

[Shedrech]

hi @Imogenlily
personally, as an Attorney, in your circumstances, I wouldn't go ahead with using your mum's money to purchase a property ... as you describe, there are too many questions around the issue

an Attorney must only act in the best financial interests of the donor, and tying up your mum's money may not be seen as a useful action ... an Attorney needs to conserve funds so that they are available for payment of necessary expenses and any care fees

I think the money also needs to be moved into an account in your mum's name, it's not best practice to have any of her finances held in someone else's account

 

[Bod]

So I'm in a complicated situation and could really do with some advice.

My mum was recently diagnosed with Mixed Dementia (Altzheimers and Vascular) but we've suspected for a while. Me and my brother are now her Lasting Powers of Attourney. I live with my mum and am gradually becoming her carer and also my stepdad who has mobility and memory problems but no diagnois. Neither are in good shape. Before mum had dementia we previously discussed buying houses with money we got after my sister died seven years ago but my mum couldn't handle finances and left everything to my stepdad (very secretive about money and won't talk about it) and things just got shelved.

Since mum's diagnosis me and my brother are worried we'll end up spending the insurance settlement on care etc for mum and if then she needs further care or a home, there won't be any money left (she doesn't have many savings and I'm on ESA)

Because of this and potential future care costs (live in carers, nursing homes etc) me and my brother decided to get a property to rent out that's next door to him so it would give us a bit of income for future bills etc. My mum has some money for an insurance settlement after my sister died in a car crash, she previously said she wanted the money to help me and/or my brother. At the beginning of her dementia she started getting paranoid and insisted on transferring the money to my brother (she thought my stepdad was stealing from her and he has been in serious debt before) but we has to transfer the money because she's not good with computers. We only realised it was possibly dementia several months later (I thought she had PTSD because of my sister's death)

Me and my brother have found a house (next door to him) and we are talking to the conveyance and they are insisting they talk to mum to check if she gave the money freely or if we 'badgered' her into it. Problem is I don't know what mum remembers and we've learn money is something that really stresses/upsets/confuses her if we talk about it (I organise her money, pay for things for her etc) We've explained our situation to the conveyer for the house who is now having to talk to her lawyer firm as they can't be sure the money was given of mum's free will. I feel like me and my brother are being painted as the bad guys. The only reason we wanted to get a house was to find a way to get some income as a protector for any future care needs for them both - aside from our house and the insurance payout we do *not* have a lot of money and some has already been spent on house repairs etc.

Prior to this my mum and stepdad never discussed money with any of us, so we're completely in the dark about their finances etc and my stepdad has always handled the money and stonewalls about everything- problem is he now has memory problems too and we can't ask either mum or my stepdad about finances.

I'm just worried this conveyencer and the law firm will just think me and my brother are trying to take money from mum/trick her into something.

Am I correct in thinking.
You and your brother have LPA for your mother. (Both health and finance?)
Mother has transferred money to the brother, before the diagnosis and LPA was set up or after?
You wish to buy a property to rent out in order to create an income for mothers future care.
If the money was given to brother "freely" then the money and tax liability are his.
It really comes down to what other assets/savings inc half of any joint accounts with step-dad, does your mother have?
If mother's future Care costs are not dependant on any Local Authority funding, then there might not be any problem.
However if LA funding is needed then a financial assessment will be made and questions will be asked regarding the insurance money and possible "Deprivation of Assessets" meaning if the LA believe the money to be there for Care, it will be charged for. Step-dad's stonewalling could cost him very dearly, if he doesn't co-operate with the LA.
The idea of buying a rental property will be looked at carefully, will the rental income be large enough to fully pay for care, or will a "top-up" be needed?
Would it be better for the capital to be "in the Bank" for immediate use rather than be tied up in an investment property?

In all, the exact ownership of the insurance money needs to be established.


Bod

 

[Grant50]

I'd look at a fixed rate bond to create an extra bit of income - keep aside the funds you'll need for moms care for a year and put the rest in a 1 year bond and then do that every year making sure you keep out only those funds you'll need for her care for that year so you have easy access and arent penalised. You can opt for monthly or yearly interest depending on circs (you'll get a clighly higher interest rate if you keep the interest in to year end . A rental, especially in the last 3 years when rules and tax breaks have diminished isnt necessarily a good investment for monthly income and creates more hassles when you have to do the tax returns! It might even dwindle funds more when things go wrong. Boiler, new roof etc