How to manage money of an older person you care for

Depending on the kinds of difficulties someone’s having with their finances, the help you could provide might involve anything from helping them with bills and paperwork and assisting with their day-to-day money, through to taking on a lasting power of attorney

Providing informal support

When you’re helping support someone with long-term-care needs, you should try to ensure that they’re making the best use of their money to meet those needs

This might mean helping them with their care plan, making sure they have money to spend on the hobbies and activities they enjoy, and that any allocated care budget is used wisely

Help someone informally with day-to-day money

If you find yourself managing a personal care budget that has been awarded by a local authority or care trust, then it comes with certain responsibilities and obligations that you must fulfil

Direct payments explained

What if someone needs more support?

Arranging to formally manage a friend or family member’s money for them is a big step for both of you. For them it means giving up financial control and entrusting someone else with their money. For you it means taking on responsibility for someone else’s financial future. So it isn’t something to be entered into lightly

The law says you must assume someone is able to make their own decisions unless there’s evidence to the contrary

If the person you’re caring for ‘lacks mental capacity’, you can apply to the Office of the Public Guardian for what’s called ‘power of attorney’ to formally handle their financial affairs. This would allow you to deal with, for example, the bank and care providers on their behalf

Bearing all this in mind, it’s a good idea to think about mental capacity now and work out what you might need to do in the future

When does someone need formal help with managing their money

Preparing for the future

Don’t put off setting up a power of attorney – it’s much easier to do when the person can still make their own decisions

Before setting up a lasting power of attorney you need to know what’s involved – the different types, how much it costs and how long it will take

Setting up a power of attorney

 

 

 

Comments are closed.

Other Legal & Finance - Finance - Pensions Articles

Managing the New Pension Flexibility

21 Apr 15

Changes introduced from 6 April 2015 allow people the flexibility to access their pension savings more…

Personal Allowance – Is It A Giveaway?

07 Apr 15

New legislation on personal allowances From the 6th of April 2015  married couples and civil partners can…

Key Facts about the New State Pension

08 Jan 15

The new state pension is changing on 6 April 2016. How will state pension affect older people? They’ll remain…

Budgeting for bereaved parent

29 Nov 14

If your partner used to manage the budget for some or all of the household finances, taking these on after they die can feel overwhelming. Follow these steps to find out how to take control of your money.

Beware Pension Scams

16 Sep 14

Pension scams are on the increase in the UK. ‘One-off pension investments’, ‘pension loans’ or upfront…

From our forum...

05 Jun 13 - jennifer-finlaybtinternet-com
05 Feb 18 - katemain

Shop Online - view all

Get Going Travel Insurance

Get Going Travel Insurance offer medical travel insurance at the right price. 0000

Find out more

Goodtogoinsurance.com

Travel insurance tailored for those with & without medical conditions -no age limits. Call 0844 334…

Find out more

Energy Helpline

Save up to £533 on gas and electric by comparing all supplier’s prices with the Energy…

Find out more