What happens to personal savings when someone dies

[Dixon61]

Hello, I am hoping someone may be able to help. I have an older brother with severe learning disabilities. He lives in residential care and is funded by Continuing Healthcare. He now receives a state pension and I am financial appointee for him.

My question is what happens to his money when he passes away? It's not going to be a huge amount of money so going to the Court of Protection seems a bit heavy handed. I am keen to spend his money to improve his quality of life but I am meeting opposition from other family members.

Thanks in advance

[49Twister]

My advice without knowing all the ins and outs would be to spend his money to most certainly improve the quality of his life. it is his money so wondering why their is opposition. Unless there is a will or Trust fund set up any money he has would go to the state. He is obviously retirement age so he is allowed £10,000 in savings but unless this is protected the state will take it. Is he able to go on holidays with someone, does he have any hobbies he enjoys, dress him well, furnish where he lives, give him the best of everything. Apologies if your already doing that, but I am really against the state getting anything. Hoping someone on here can give you some good advice as this is a tricky area.

[Dixon61 in reply to 49Twister]

Thank you for your reply. I agree entirely with you and that is what I want for him. He has over 10,000 pounds in savings. I wasn´t aware of the threshold as his State Pension isn´t means tested I assumed there wouldn´t be a threshold. I want him to have the best quality of life he can. Finding suitable holiday accommodation isn´t easy but its not impossible. Any idea where I may be able to clarification on the threshold and/or what will happen with his savings? If there is a threshold it would help my argument to spend his money

[BenjiB]

Absolutely spend His money on him. I do not understand why family members would be against that! I’m unsure what would happen to the money, more than likely it would go to his next of kin but I’m not 100% sure on that.

[Dixon61 in reply to BenjiB]

Thank you for your reply. I agree entirely, I want his money spent on him. I worry that some family members may believe they will inherit any savings and therefore I am seeking clarification so I can present the evidence that it´s best he spends now.

[BenjiB in reply to Dixon61]

The main point is as his appointee it’s your responsibility to make sure the money is spent wisely and on him. Just tell them saving it for them to inherit is not only morally wrong but you could get in trouble!

[Dixon61 in reply to BenjiB]

Unfortunately they out vote me in Best Interest decisions. I have wanted him to go on holiday for 3 years, I've wanted his bedroom decorated for 2 years. It's a complex family situation. I've raised my concerns with the relevant authorities and requested an independent advocate but apparently he doesn't meet the criteria.

[HolisticMum in reply to Dixon61]

That is so wrong of them and you are trying to do your best to spend it on him. I do hope you get what you want soon.

[Scrutineer in reply to Dixon61]

There are no rules which prevent your brother from securing the support of an independent advocate. It is likely that the criteria mentioned is related to the LA providing advocacy under the care act, which is limited to specific issues. Independent Advocacy is widely used by those who can afford to pay from personal funds. In your brother's case, you can show that advocacy is an appropriate use of his savings.

[49Twister]

I would make an appt at citizens advice, welfare rights or the carers association to get some up to date info. I don’t know the rules regarding residential care and funding through continual healthcare but these organisations would be able to advise. It used to be if you had over £16,000 in capital you can't access means tested benefits. If you have over £10,000 they deduct £1 for every £250 you have over that from benefits. I urge you to get some expert advice so you can do the right thing for your brother. Good luck

[Dixon61 in reply to 49Twister]

Thank you for your suggestions. I will get onto it today

[FELTSPAR]

The only reliable advice would come from a solicitor who specialises in wills and trusts. It would be useful to ask if appointee-ship is enough to fend off the self interest of other family members, when what’s required is the best interests of your brother. Obtaining Deputyship for just finance from the court of protection is straightforward enough, you could do that yourself, if that becomes necessary to protect your brother.

[Dixon61 in reply to FELTSPAR]

Yes I think I will seek some legal advice, someone who understands the Mental Capacity Act and Best Interest decisions.

[49Twister in reply to Dixon61]

I believe you should be able to use your brothers savings as his appointee for any solicitors costs as it is in his best interests that you need this advice.