Sophie, a 53-year-old from Buckinghamshire, is worried that her sister may be misusing their mother's funds. Since their father's death last year, their 86-year-old mother's health has deteriorated, and the two sisters were granted power of attorney over her bank accounts and health decisions. Sophie noticed that her sister has been withdrawing exactly £150 from one of their mother's accounts each month since the power of attorney was activated at the start of the year.
Concerns Over Monthly Withdrawals
When Sophie asked her sister about the withdrawals, her sister explained that the money was for cleaning their mother's clothes, petrol for trips to her house, food she occasionally brings, and her favorite chocolate bars. Sophie believes this is "hugely out of order" and questions whether such tasks should be done without expecting payment, stating, "Some things should be based on love, without any payment." She is unsure if she should label it as fraud and is seeking advice on her next step.
Expert Advice on Power of Attorney
Consumer champion Sarah Davidson advises that while the situation is tricky, it does not necessarily constitute fraud. She notes that the Office of the Public Guardian recognizes that family members often provide care unpaid, but payments can be in the person's best interests if they enable care to continue. The key issue is whether the sister has the authority to pay herself and whether the payments are transparent, necessary, and properly recorded.
Davidson points out that £150 a month adds up to £1,800 a year, and with their mother having around £95,000 in capital, every pound must be spent for her benefit. She suggests reading the actual lasting powers of attorney to determine if the sisters act jointly or jointly and severally. If jointly, all decisions must be made together; if jointly and severally, one can act alone but still has a duty to act in the mother's best interests and keep records.
Legitimate Expenses vs. Care Payments
Government guidance states that an attorney can claim genuine expenses incurred in carrying out the role, such as travel, postage, or phone calls, and should keep receipts. A fixed £150 transfer covering a mixture of expenses is harder to justify without a written breakdown. If the sister is being paid for care she personally provides, she has a conflict of interest, and the Office of the Public Guardian's guidance says such payments require authorisation from the Court of Protection.
Davidson recommends a proper meeting with the sister, asking her to pause self-payments while they review the arrangement. They should agree on a system for recording major spending, with genuine expenses claimed at cost and supported by receipts. If ongoing care is needed, they should seek advice before setting a rate and consider a care needs assessment through the local authority.
If the sister refuses to provide records or continues taking money without agreement, Sophie can report her concern to the Office of the Public Guardian, which can investigate and take legal action. The best outcome, Davidson says, is to establish clear rules around their mother's money while there is still enough trust to protect both her finances and the family.
