POA record keeping

Rey61

Registered User
Mar 23, 2017
15
My husband has POA for his mother...recently "awarded". What records are we required to keep given that she is my husband's business partner in a farm so her pension and attendance allowance are paid directly into the business which keeps the roof over her head, the heating and electric etc going? We do not live there but I do all the shopping, cook her meals, do her washing etc
paying for food etc from my account. I do all the farm accounts and obviously have no desire to duplicate anything I already do. Is it enough to keep receipts highlighting stuff specifically for her own use and showing a 3 way split for food plus noting the amount paid for electric, heating, phone, insurance monthly in a book? I teach, help out on the farm, sort out prescriptions and take her to her many appointments as well keeping up with the farm accounts, doing all the washing, cooking, shopping etc so the thought of more very detailed accounts is sending me into a flat spin and my already high blood pressure heavenwards... Any advice gratefully received.
 

karaokePete

Registered User
Jul 23, 2017
5,109
N Ireland
This extract is taken from the CoP site:-

"Records and expenses
Keep a record of:

  • important decisions you make and when, for example selling the donor’s home or agreeing to medical treatment
  • the donor’s assets, income and how you spend their money - if you’re their finance and property affairs attorney
Include details of who you asked for advice and any disagreements.

Don’t include small, everyday decisions.

Expenses
You can only claim expenses for things you must do to carry out your role as an attorney, for example:

  • hiring a professional to do things like fill in the donor’s tax return
  • travel costs
  • stationery
  • postage
  • phone calls
You can be ordered to repay the donor’s money if you misuse it or make decisions to benefit yourself."

https://www.gov.uk/lasting-power-attorney-duties/records-expenses
 

Rey61

Registered User
Mar 23, 2017
15
Thank you for the information. We certainly won't be claiming anything back but were worried about showing how money is spent.
 

marionq

Registered User
Apr 24, 2013
6,012
Scotland
When I had a financial assessment done for my husband I was told not to be too “pedantic”. In other words not to note all the small stuff.
 

arielsmelody

Registered User
Jul 16, 2015
516
Why is her personal income paid into the farm's business account? If it was me, I'd set up a separate account for her income, and then it can be quite clear what she pays out as her contribution to utilities, food etc. I agree that you don't need to do anything too complicated, but if it's all mixed in with business bills it's going to be difficult to untangle for tax.
 

Rey61

Registered User
Mar 23, 2017
15
Why is her personal income paid into the farm's business account? If it was me, I'd set up a separate account for her income, and then it can be quite clear what she pays out as her contribution to utilities, food etc. I agree that you don't need to do anything too complicated, but if it's all mixed in with business bills it's going to be difficult to untangle for tax.
Because she was/is a partner In the farm business, this is what was agreed by her 20 odd years ago and her home is on the farm. Her state pension would not cover her living expenses.
 

arielsmelody

Registered User
Jul 16, 2015
516
Because she was/is a partner In the farm business, this is what was agreed by her 20 odd years ago and her home is on the farm. Her state pension would not cover her living expenses.
I'm not suggesting you are doing anything underhand, but now that your husband has power of attorney I think it would be wise to make more of a separation between her money and yours/the farm's. I'd advise you to go to a solicitor or accountant and get professional advice on the situation regarding the farm business if your MIL is a partner and has lost mental capacity.
 

Rey61

Registered User
Mar 23, 2017
15
Thankfully the partnership was drawn up by our accountant many years ago so that the business could continue should anything happen to either partner plus we had advice to keep records by our solicitor when POA was being registered. My initial query was about the depth of detail required as I already do the farm accounts and VAT so was worried that the same amount of detail would be required. I have been setting out the monthly direct debits plus other weekly costs, food and any other requirements such as podiatry with appropriate receipts.