LPA - House Issue

[Rds1]

My Dad is in a care home unable physically and mentally to do his finacial affairs. Myself my step mum and step sister are attorneys on LPA. His house is registered only to him on the deeds. Also step mum and step sister are acessing his joint account but will not let me get access if needed only want statements to keep an eye on whats going as dont trust them. I went to bank to registry LPA with them but step mum and step sister refuse to sign bank form. Thats the outline my questions are
1. As house in his name only can she sell without registring LPA with bank i know she can using LPA and i agree she needs to as to big for her.
2. As my dads will leaves house and everything else to me if step mum sells and will then have about 100.000 in equity left which i guess will go into his and hers joint account and when he dies bank says account will transfer to step mum. But the money would be from his house should money go into trust. Any views on this issue.
Also think his bank account has been changed from sole to joint since he has been in care home which worries me but cant find out till i can get access.
3. Must you by law register LPA with bank to be able to sell his home and carry out financial tasks.

[james robertson]

Re: LPA - House Issue

Are the LPA registered with the Office of the Public Guardian yet; they aren't much use to anybody before they are. how are the decisions to be made Jointly and severally?
The attorneys and that includes you, are liable for the assets of the donor and are only able to do things that are in the interest of the donor.

if some do not do so you or anybody could refer them to the court of protection. it will involve extra expense. but you might lose you inheritance if you do not act.

[Peridot]

Re: LPA - House Issue

Hi Rds1,
Once the LPA is registered with the Office of the Public Guardian (you haven't indicated if this is the case as yet), then as James mentioned the attorneys must act in the Donor's (your father) best interest and be able to demonstrate this if questioned. Banks have differing processes for registering any LPA's unfortunately. BUT legally if the LPA is already registered and the attorney's are able to act jointly and severally then any of the attorneys should be able to deal with the bank. Legally they do not need all three attorney's authority.
An important question is whether the attorney's are appointed jointly and severally. It will be indicated on the LPA (usually either a tick box or a sentence indicating how the attorneys are to act. If joint and several on all decisions then each attorney can act independently of the others so in theory one could sell his property without the others. Again this must all be done in your father's best interests.
If an individual attorney sells the property I would suggest that any sale proceeds are paid into a sole account, of your father's, if he has one or a specific account should be opened as attorney for your father.
How long has your been married to your step mother? It may be difficult to show that selling his home and purchasing another property was in his best interest as he is the sole owner, but there may be other matrimonial rights to consider.
I appreciate that you wish to protect any potential inheritance and I do not know your father's financial position but at this time any assets such as bank accounts and property will be used in calculating any care fees that the Local Authority (LA) may pay. Whilst your step mother is living at the property the LA can not force a sale. Any proceeds of sale would be your father's assets, subject to any matrimonial rights that your step mother has acquired, and would be considered when calculating any entitlement to care fee assistance.
The bank should not have created a joint account without your father's instructions. If he no longer had capacity to provide his instructions at that point then that is a concern. It may be that he agreed to this or the account had been opened previously. Did you know exactly what your dad's finances were before he went into the home?
There are a number of issues here not least to establish how the LPA indicates the attorney's are to operate. If not joint and several then the three of you will have to agree to any proposals and sign any documents necessary. In some ways this is a good thing as it means that one attorney can not 'do their own thing' without the agreement of the rest of you. This may be why the bank requires all three of your to sign their registration document? This should also alert the bank to the situation that your father no longer has capacity to deal with his affairs and should also flag an issue with any joint accounts. Do think carefully however as the bank could freeze the joint account which may prevent bills etc being paid, which is unhelpful for all involved.
This is a difficult situation and I do understand your concerns. As an attorney you are entitled to all the information, but the only route open to you if you believe that there is an issue with any of the other attorneys not acting in your father's best interest and you are unable to discuss the issues with them, would be to contact the Office of the Public Guardian. If any attorney needed to be removed or another appointed, with your father having lost capacity it would only be possible through making a Court of Protection application, which is expensive.
If possible at this point, it may be the most sensible to try and speak to your co-attorneys and agree some ground rules as to how you will deal with matters moving forward. Your father is in a home which will no doubt come at a cost, your step mother needs somewhere to live and is married to your father and the three attorneys need to do what is best for your father, not best for any attorney or other individual. It is a difficult situation but one where any past (or future) issues need to be put to one side so that you can all act in your father's best interest.
Wishing you all the best.
Peridot