POA , what should i be doing?

[Mike James]

Hello, first time poster.
I have POA for Mum who is in a home with dementia. I've been POA for nearly three years, dealt with mum's finances, kept bank statements, cheque book records in that time. Do Mum's records ever get checked by a government office, or can I shred the statements from 2 years ago for example? Mum is fortunate to be able to self fund but will not be affected by IHT, but not sure what records I need to keep hold off, even for the future when mum passes. Do the HMRC look into an estate which is not affected by IHT? Reading about this online has worried me as I have not been contacted about her finances since I took over as POA and want to ensure everything done by the book. Many thanks

 

[nae sporran]

Hullo and welcome to the forum, Mike. Sorry I can't answer your questions, but there is always someone around who has the right experience.
In the meantime it might be worth calling the Office of the Public Guardian
Email customerservices@publicguardian.gov.uk
Telephone 0300 456 0300
or the dementia connect helpline and https://www.alzheimers.org.uk/dementia-connect-support-line will give you phone numbers and operating times. I have found both to be very helpful and knowledgeable in the past.
It is a subject area that comes up a lot, so please keep reading and keep in touch if you get the chance.

 

[Mike James]

Thanks very much for the reply

 

[Scarlet Lady]

Hi, Mike. Welcome to the forum. You sound as if you‘ve been doing a sterling job as POA for your mum. My feeling is that unless there is anyone who would question the way you’ve handled your mum‘s situation and her finances, I don’t think you have reason to worry. You do need to keep records, as you’ve obviously done. I personally wouldn’t shred bank records under three years, although I appreciate if you have everything online it’s very easy to print copies. And I wouldn’t be too detailed about the contents of the grocery bill! People have to realise the reality is that without you, this person may not be alive.

As far as HMRC is concerned, I doubt very much they would have any interest at all. (I’m speaking here as a retired tax inspector!). If your mum pays income tax, they’d want to settle her liabilities when she passes away. That usually results in a refund, rather the other way round. That wouldn’t have anything to do with you as POA. If there will be no liability to IHT, the Capital Taxes Office won’t be interested either. Occasionally, if a solicitor has been appointed as an Exor, they do feel the need to drag things on by delving into stuff they don’t need to. After all, why send one letter when ten will be much more lucrative?
Apart from that, if things are running smoothly and it sounds as if they are, I wouldn’t worry. Just keep records of everything you think is important. If it’s not required, no harm done. Best wishes to you and your mum.

 

[Shedrech]

hello @Mike James
a warm welcome to DTP

it isn't often that the OPG/COP check into an Attorney's actions .... they do require an annual accounting from a Deputy, but not an Attorney

personally, I'd say keep records, from when you took over management of the finances if possible (ideally a few years before too so you can show you are continuing as before, or doing better), just so that you have peace of mind that you could answer any questions ... though that dooesn't mean you have to keep every small receipt .... I kept the monthly bank statements and wrote details of purchases on those eg grocery shopping, lunch out, new clothes, new recliner chair (keep receipt for a big purchase such as this) .... have as much as possible paid through regular Direct Debits

I think I had 10 years or so in the end, but in ring binders so didn't take up much room

 

[Mike James]

Hi, Mike. Welcome to the forum. You sound as if you‘ve been doing a sterling job as POA for your mum. My feeling is that unless there is anyone who would question the way you’ve handled your mum‘s situation and her finances, I don’t think you have reason to worry. You do need to keep records, as you’ve obviously done. I personally wouldn’t shred bank records under three years, although I appreciate if you have everything online it’s very easy to print copies. And I wouldn’t be too detailed about the contents of the grocery bill! People have to realise the reality is that without you, this person may not be alive.

As far as HMRC is concerned, I doubt very much they would have any interest at all. (I’m speaking here as a retired tax inspector!). If your mum pays income tax, they’d want to settle her liabilities when she passes away. That usually results in a refund, rather the other way round. That wouldn’t have anything to do with you as POA. If there will be no liability to IHT, the Capital Taxes Office won’t be interested either. Occasionally, if a solicitor has been appointed as an Exor, they do feel the need to drag things on by delving into stuff they don’t need to. After all, why send one letter when ten will be much more lucrative?
Apart from that, if things are running smoothly and it sounds as if they are, I wouldn’t worry. Just keep records of everything you think is important. If it’s not required, no harm done. Best wishes to you and your mum.

Thanks very much, really appreciate your help

 

[Ruth1974]

HI, I think they only check if someone is concerned that something is wrong. Until my husband went into a home we had a joint account and although I had POA I didn't act any differently. As soon as he left home I separated the finances and started keeping receipts and a record of everything.

 

[Phil2020]

Being an ultra cautious kind of chap, and having had experience of HMRC being 'awkward', I suggest that you keep as much record of the financial affairs - bank statements, bank letters, receipts, invoices etc etc - that you have for a period of six years. This is the time frame that HMRC is entitled to 'go back and pore over' should it feel so inclined. And if it's a slow day for them, who knows?

Additionally it's worth remembering that in some circumstances executors of Wills can be held personally liable for financial shortfalls in deceased estates. Having financial records available may be of help where such matters are contested.