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Revoking POA

Notenoughsleep

Registered User
May 25, 2015
31
Wales
Hello all,
Not posted for a while but after some financial advice.
I have POA for mother who is now in a care home. No liquid assets left only the house which is owned jointly by step sister, who doesn’t live there. So house empty at moment. Local Authority have offered deferred payment agreement which we are likely to agree to. I’d like to buy house but under POA can’t act as buyer and seller. COP has said I need to revoke POA and instruct a deputy. Have found a family member who is agreeable to become deputy so he will then be responsible for bank accounts etc. I’m just wondering, if after I buy the house, could he then revoke his deputyship and transfer deputyship back to me? Is this legally possible do you know? As an only child, I think I’d like to have final control over my mother’s assets. Has anyone gone down this route? Thanks for reading.
 

Beate

Registered User
May 21, 2014
12,043
London
I've heard my fair share of bad advice from the COP, but that is absolute nonsense. Never ever give up LPA. Deputyship is far more costly and onerous, as it requires receipt keeping and annual accounts. And you can't simply transfer deputyship, your relative would have to revoke it and you'd have to reapply. I'm pretty sure you are allowed to buy out your sister's share if you give her a fair market price. Others with more knowledge of this will come along but don't give up your LPA just yet!

I just checked gov.uk and it says
You can buy or sell property on the donor’s behalf if it’s in their best interests.

Contact OPG if:

the sale is below the market value
you want to buy the property yourself
you’re giving it to someone else
They can advise you on whether you need to apply to the Court of Protection about this.

It doesn't say anything about revoking LPA, just that you might need permission from the COP. Have you asked the OPG what they think?
 

zlbw44

Registered User
Oct 18, 2016
7
An application should be made to the COP this will show you've acted in the best interests and not for personal gain. If you show you'll buy it for market value and is in best interests then that should be OK. In some circumstances where for example, the donee owns the property with the donor then a trust will need to be created. I take it renting won't work?
 

Notenoughsleep

Registered User
May 25, 2015
31
Wales
I've heard my fair share of bad advice from the COP, but that is absolute nonsense. Never ever give up LPA. Deputyship is far more costly and onerous, as it requires receipt keeping and annual accounts. And you can't simply transfer deputyship, your relative would have to revoke it and you'd have to reapply. I'm pretty sure you are allowed to buy out your sister's share if you give her a fair market price. Others with more knowledge of this will come along but don't give up your LPA just yet!

I just checked gov.uk and it says
You can buy or sell property on the donor’s behalf if it’s in their best interests.

Contact OPG if:

the sale is below the market value
you want to buy the property yourself
you’re giving it to someone else
They can advise you on whether you need to apply to the Court of Protection about this.

It doesn't say anything about revoking LPA, just that you might need permission from the COP. Have you asked the OPG what they think?
Beate,
It is both my mother’s share and my step-sister’s share that I wish to buy. I, too, read all the notes, contacted the OPG for guidance and they subsequently directed me to the COP - it was they who gave me that little nugget of advice – perhaps I should try a different staff member ! As the property is jointly owned, perhaps I need a replacement trustee and not a deputy – any ideas, before I ring them again?
Thanks.
 

Pete R

Registered User
Jul 26, 2014
2,036
Staffs
perhaps I should try a different staff member ! As the property is jointly owned, perhaps I need a replacement trustee and not a deputy –
Another phone call is well worth it. All you need to do is apply to CoP for a trustee to be appointed to act on your Mother's behalf for the sale.

The forms are CoP1 & Cop1D and the cost is £400.
https://formfinder.hmctsformfinder.justice.gov.uk/cop001-eng.pdf
https://formfinder.hmctsformfinder.justice.gov.uk/cop001d-eng.pdf

DO NOT under any circumstances revoke your LPA.

Good luck

:)
 

nmintueo

Registered User
Jun 28, 2011
844
UK
I’d like to buy house but COP has said I need to revoke POA and instruct a deputy
Wrong! Wrong! Wrong!

(And was this statement from CoP in writing?)

I've heard my fair share of bad advice from the COP, but that is absolute nonsense. Never ever give up LPA.
Second that, and thanks, Beate. That advice from CoP was terrible. You should not be contemplating giving up Power of Attorney.

previous threads:

Sale of house to Attorney
http://forum.alzheimers.org.uk/showthread.php?67196

How can I buy Mum's home as I have Power of Attorney?
http://forum.alzheimers.org.uk/showthread.php?95482
 
Last edited:

cragmaid

Registered User
Oct 18, 2010
7,941
North East England
Three years ago I bought Mum's house whilst acting as POA and while it was subject to a Deferred Payment. After it had failed to sell for two years despite having reduced the price by £40K , I paid the price that the LA had valued the property for, when it arranged the DP scheme (which was the lowest price we could afford to sell). I was advised to use a separate solicitor for the purchase and the sale. The DP and selling fees were then paid out of the profits and the balance banked for Mum's CH fees.
 

Notenoughsleep

Registered User
May 25, 2015
31
Wales
Another phone call is well worth it. All you need to do is apply to CoP for a trustee to be appointed to act on your Mother's behalf for the sale.

The forms are CoP1 & Cop1D and the cost is £400.
https://formfinder.hmctsformfinder.justice.gov.uk/cop001-eng.pdf
https://formfinder.hmctsformfinder.justice.gov.uk/cop001d-eng.pdf

DO NOT under any circumstances revoke your LPA.

Good luck

:)
Thanks for that Pete R. I will give them another ring and hopefully get some sense this time. I thought companies would be easier to deal with now my mam is in a home - how silly am I !
 

Notenoughsleep

Registered User
May 25, 2015
31
Wales
Wrong! Wrong! Wrong!

(And was this statement from CoP in writing?)



Second that, and thanks, Beate. That advice from CoP was terrible. You should not be contemplating giving up Power of Attorney.

previous threads:

Sale of house to Attorney
http://forum.alzheimers.org.uk/showthread.php?67196

How can I buy Mum's home as I have Power of Attorney?
http://forum.alzheimers.org.uk/showthread.php?95482
Thank you for your help. No, it wasn't in writing - I rang them. I'll now email them for clarification - lesson learnt!
 

MartinWL

Registered User
Jun 12, 2020
315
Also, of course, have independent valuations of the house in writing from estate agents and make sure they are kept safe for 500 years!