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Lasting Power Of Attorney / Court Of Protection help wanted please


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Just need a bit of advice really. A bit of background on this one: a relative of mine has an eldery parent who lived alone in a council bungalow. While the council were making repairs she stepped into a hole they had made in the floor and broke her leg. She spent 9 months in hospital as a result and now lives in a care home. The council admitted liability for the accident and a compensation claim is under way.

 

My relative has Lasting Power of Attorney for his parent's financial and personal affairs.

 

The solicitor for the counncil is pushing to have the compensation paid into the Court of Protection.

 

The worry is that the council will plunder the court of protection to pay for her care. My relative wants to ensure the money is paid into a trust or something where the council can't touch it.

 

How does the LPA affect this please?

Edited by lunar jim
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If the paid compensation increases her net worth, then it is only right that (under the current rules) the taxpayer is treated fairly. From what you describe, by attempting to place the payment 'out of reach' the council will be funding her dependent's inheritance, whilst having to pay for her care and upkeep as well,

 

For those who have actually made provision for their old age, then it not unreasonable to expect them to pay for the costs they incur whilst living out their years. Should this money run out, then the council would step in to ensure the levels of care are not compromised.

 

Trying to hive off this money to allow relatives t5o benefit is not the way the system was designed, and I cannot see how you could insist on changing this.

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Understand what you're saying, but, the question is around how the LPA works: does the council's request to pay the money into the CP override the LPA, or can my relative choose where the money is paid, as his parent would do were they able?

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I can't see how it 'overrides the LPA's wishes - if a cash benefit is payable, then it can come in many different way, a cheque or bank transfer. I don;t believe the CP will be interested in holding onto this as a valid LPA nominee can then move it to wherever it will do the most benefit - high interest account, premium bonds or whatever. It just sound as being a ruse - why not call the CP and explain your concerns?

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I see the point.

 

It makes no sense that the council pays itself because of it's own fault, but if the care home were run privately, not by the council, the net result would be the same.

 

Such is the Alice in Wonderland world of local government!

 

:rolleyes:

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I don't know how much compensation is expected or what other capital this elderly person has but she's certainly entitled to hold onto £23,000 of her money for the moment and they can't ever touch the last £14,000. See below.

Savings

 

If you have savings which you hold jointly with your partner, we will assume you have equal shares.

 

  • Over £23,000 - You will have to pay the full cost of your placement until your savings fall below this amount. Once your savings approach this amount you need to contact the council's Central Duty Team. They will arrange to assess your needs and finances.
  • Between £14,000 and £23,000 - You will have to pay £1 a week for every £250 or part of £250 of your savings.
  • Under £14,000 - We will ignore your savings when we are assessing your finances.

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