Problems with POA

xylophone

Maybe but the regulator and ombudsman would take a dim view of investing new money at age 95 unless there is a very good justification.

Apparently a full stocks and shares ISA subscription is planned for next year, whether by bed and ISA or new money.

The dividends arising on these investments help to fund care home fees for the donor who has had such investments for many, many years.

Why should the regulator or ombudsman become involved?

The POA gives full discretion over the donor's finances to the Attorney.

jonesMUFCforever

denis06 wrote: »

I'm having real trouble investing £20k for my father as his POA. The post office have shown me a cold shoulder and returned my cheque. I tried another route but that too fell by the wayside. Can anyone tell me who would be interested in this investment given that my father is 95 next week?

What kind of investment is this?
Can you make the investment by cheque or does it have to be maybe by debit card, bank transfer or D/D?

Linton

xylophone wrote: »

Apparently a full stocks and shares ISA subscription is planned for next year, whether by bed and ISA or new money.

The dividends arising on these investments help to fund care home fees for the donor who has had such investments for many, many years.

Why should the regulator or ombudsman become involved?

The POA gives full discretion over the donor's finances to the Attorney.

The POA has full discretion over the the donor's accounts. The issue is how should that discretion be used. The first question to ask is whether the donor is able to make their own financial decisions. If they are, no issue arises - the attorney does not use any discretion. Decisions are made by the donor. The attorney can make suggestions to the donor, but the donor has the final say.

If the donor cannot make their own decisions then how does the Attorney act? I would take a strong line here - the Attorney should avoid making changes but if they are necessary any actions taken must be demonstrably purely in the donor's interests. Any effect on inheritance should be incidental. We have seen too many cases on these forums where the relatives' focus is on getting hold of granny's house.

Lets apply that principle to the question of whether true investment is in the interests of a 95 year old. We could have the case where the 95 year old has lovingly tended their large investment portfolio for decades. In which case the attorney should probably continue to operate the portfolio, possibly with professional help and possibly at a lower risk level. If more income was required then it could be sensible to sell some or all of the portfolio.

At the other extreme if the donor has never invested in their lives and always kept their money in bank savings accounts then that, or equally safe alternatives eg care annuities, should continue. If it results in expenditure out of capital, so be it.

Sadly some policing is required. Perhaps it is most easily done by the financial institutions under supervision of the regulators. Perhaps an attorney putting serious amounts of new money into an investment should have to get IFA approval.

denis06

The post office declined the investment as I couldn't recall the maiden name of my father's mother.

Linton

denis06 wrote: »

The post office declined the investment as I couldn't recall the maiden name of my father's mother.

Did they think it was going to be your account? Did they know you had PoA for someone else? It seems an unlikely question to confirm your identity.

Mojisola

denis06 wrote: »

The post office declined the investment as I couldn't recall the maiden name of my father's mother.

It will be on your father's birth certificate.

PasturesNew

denis06 wrote: »

The post office declined the investment as I couldn't recall the maiden name of my father's mother.

Well you need to try a bit harder.... I could tell you my great-great-grandmother's maiden name ... and her mother's ... and her mother's ...

I had to have an appointment with Barclays to get PoA set up/authorised. We found Nationwide easy/good too, after a short/painless interview. I think, from memory, we found the NW 6 month bonds pretty easy... but we were just trying to stick it "somewhere safe, where the rates weren't as dire as other options where we had the PoA registered"

talexuser

I have POA with Lloyds, Bank of Scotland, Yorkshire Building Soc, and Fidelity Fundsnetwork for my mother. I ran her S&S ISAs and advised on savings for the last 30 years, she wanted me to get POA before any serious symptoms of alzheimer's appeared, which was really useful when she became unable to look after herself.

Regarding decisions in the interests of the recipient - next year I intend to transfer £15240 of savings into the income paying (relatively safe funds) ISA. My logic is her pensions and ISA income almost pay her care home fees and the cash savings are enough to cover any shortfall in fees for the next 68 years according to my spreadsheet, but the interest on cash savings may not be enough to keep up with care home fees increases every year. So even if the stock market halved and ISA income fell there would still be enough cash after transfer to cover shortfall in her fees for over 20 years. Thus believe the ISA risk is worth taking compared to poor interest in savings, even though she is 86. I would say that a stock market investment at that age would be in her interest in these circumstances to protect potential care home fees since does not risk the realistic possibility of running out of total fees coverage? (where I would cover the shortfall anyway)

xylophone

Did your paternal Grandma have any brothers from the same marriage?

Assuming your father was born after 1912 , you could also try

http://www.freebmd.org.uk/ - the birth record will show his mother's maiden name.

Vortigern

denis06 wrote: »

I'm having real trouble investing £20k for my father as his POA. The post office have shown me a cold shoulder and returned my cheque.

Judging by the thread below, the Post Office have done you a favour by refusing your father's cash.

https://forums.moneysavingexpert.com/discussion/5223939

I opened a Santander 123 current account using POA. I can operate the account online and it provides a easy home for 20k @ 3% despite the fee increase. You need only one account (for 20k) and a couple of DDs. Pay in £500 per month (from income, or from another account)