Opinions please re IFA

Peelerfart

Bowlhead, no offence taken as for Fred, I asked for opinions so i got them.

In response to other questions. I don't know what the arrangement was between my in laws and their IFA but I know he was paid 18 months ago to set this up and he was aware shortly (6 months ish) after that of her condition.

My father in law is of the opinion that he will pay and never use him again.

It's not my place to intervene either way

dunstonh

or this he charged £500.

Opinions anyone?

If the IFA was employed on a servicing basis then you would not expect a charge. The whole point of paying for ongoing servicing is cover things like this.

If the IFA was employed on a one-off transactional basis (i.e. initial fee only) then it is not unreasonable for them to charge. This is because if you choose not to pay the IFA for ongoing servicing then should you really expect to receive ongoing servicing at no cost?

That said, a lot of IFAs would not charge if they were just acting as go between on the paperwork.

Fees should always be disclosed in advance of payment. You cant hit someone with a fee without telling them there is going to be a fee first. They have to have the opportunity to say no.

LHW99

In response to other questions. I don't know what the arrangement was between my in laws and their IFA but I know he was paid 18 months ago to set this up and he was aware shortly (6 months ish) after that of her condition.

At a better time it would be worth checking what conditions are in place on any of your FIL's investments, so that everyone is aware of what is / is not included.
I have been through this a few times, and unfortunately there are still organisations out there whose procedures are not as sympathetic as one might hope.

Mistermeaner

see this thread; a similar experience

I refused to pay a fee quoted in advance and have managed the transfer with the IFA.

https://forums.moneysavingexpert.com/discussion/5963546/advisor-fees-transfer-of-isa-to-spouse-on-death

Peelerfart

An interesting read mistermeaner, and yes, agreed a similar, unhappy experience.

In reply to dunstonh, I was present for the conversation between IFA and father in law when we knew the inevitability of her condition.
When asked about transferring mother in laws funds to father in law's name the IFA said to leave it to him, he'll do it. No fee was mentioned.
Just for balance, FIL didn't expect him to do it for free.

LHW99, I'll be simplifying his finances over time.
I'm only up to internet banking with him at this stage.

I expect a long,slow, slog.

dunstonh

When asked about transferring mother in laws funds to father in law's name the IFA said to leave it to him, he'll do it. No fee was mentioned.
Just for balance, FIL didn't expect him to do it for free.

I suspect they cannot enforce the fee on that basis.

Do you know whether there was ongoing servicing?

Peelerfart

I don't know dunstonh, I could ask but I doubt of FIL would know. His wife dealt with such things.

I don't think he wants to go down the road of enforceability, he was and is willing to pay what he thought a reasonable fee.

It's a shame in so many ways but hey!

That's life (no pun intended)

fred246

Whatever was agreed £500 to post a letter is excessive.