Power of Attorney. What rights do Attorney's have - can I move my father's money?

Tabatha2008

Hi

I have Power of Attorney over my father's money, and am very pleased so far with the advice this forum has given me.

Tomorrow I am seeing an independant Financial Advisor, as my father has an very large amount of money invested in Inscape, which is part of Santandar and Abbey. I will be asking him if it's possible to place some of his money with other Banks regarding the credit crunch, but the question I want to know today is regarding Inheritance Tax.

I have been reading the articles regarding this on this website, and was just wondering if I have any rights as Power of Attorney, to move some of his money into a Trust Fund, thus avoiding Inheritance Tax, or indeed anything else I could do to avoid this tax.
Thanks for your help.

withnell

As attorney, you can move the money wherever you like as long as it is in his best interests

Biggles

With PoA, you have the same rights over his money that he would have.

But, as already mentioned, you may have to be able to show that any action you took was in his best interests (which may not necessarily be the same as the best interests of his family)....

6022tivo

Just a quickie, I know I should google.

Can two people hold POW, jointly?

Broadback

Yes. My wife and I have set up an enduring power of Attorney so that the eldest of each of our children (we are second timers) have join P of A.

Be_Happy

6022tivo wrote: »

Just a quickie, I know I should google.

Can two people hold POW, jointly?

Not sure if it's the same throughout UK, but in Scotland you can have 2 or more joint POA holders, but it's also possible to set it up with one POA and a substitute POA to replace the first one if it becomes necessary.

sloughflint

6022tivo wrote: »

Just a quickie, I know I should google.

Can two people hold POW, jointly?

Yes and there are two ways that they can perform their attorney duties.

I can't remember the words. 'Jointly or severally' ring any bells with anyone?

Biggles

6022tivo wrote: »

Can two people hold POW, jointly?

They not only can, but it would be wise to consider having more than one attorney, either as joint attorneys or by having a replacement attorney. If you only have one, and they die or lose mental capacity, the PoA would be null and void and, if the donor had then lost mental capacity, it would be necessary to go through the expensive and time-consuming business of going through the Court of Protection.

I can't remember the words. 'Jointly or severally' ring any bells with anyone?

Yes, that's the phrase from the old EPA. The new terms are 'Together' or 'Together and independently'.

dzug1

Who are the beneficiaries of this trust fund?

If family it could be regarded as a (deferred) gift to them. An attorney cannot make large gifts - at least not off his own bat. He must apply to the OPG for permission to do so. If there's a good reason (eg avoiding IHT) they are likely to look favourably on it.