Misleading advice from Which on IHT and pensions from 2027

bobster2

Take a look at this…

Inheritance tax on pensions: HMRC reveals how the new rules will work in practice

Lots of important information in there - as from April 2027 Executors are going to need to obtain pension valuations prior to Probate.

But look at this in the final section on ways to prepare…

Arrange power of attorney: Setting up financial power of attorney now can help your representatives deal with banks and pension providers more easily after you die. Having this prior authority often makes institutions more willing to share information early on, helping your loved ones avoid the long delays that usually occur before probate is granted.

Errr….really ????? POA expires when someone dies.

Simply posting here for discussion (it is a discussion board after all!😊)

Keep_pedalling

it would only make things easier if the attorney was actively managing the finances before death so they would be starting with a full understanding of what assets were held.

bobster2

https://forums.moneysavingexpert.com/discussion/comment/82013835#Comment_82013835

Yes - absolutely. Have been in that position. And - although this is technically not permitted - used my POA internet banking access to download statements and check the balance just before informing the bank about the death.

But as soon as the financial institution is informed of the death - there's no reason for them to be more willing to share information with someone who previously had POA. And of course, if the POA wasn't active - the bank would know nothing about it!

BikingBud

It would be logical to think that if someone is trusted as being an attorney they would also be trusted to be an executor and a pre-existing relationship with the bank should ease the difficulties.

Alongside if a POA for finance has been enacted as @Keep_pedalling noted the extent of the financial affairs would likely have been discussed and established.

But of course the separate roles may or may not be placed on one person.

bobster2

https://forums.moneysavingexpert.com/discussion/comment/82013989#Comment_82013989

Logical perhaps - but the days of branch banking a long gone. And teams dealing with bereavement will be completely different to teams responsible for putting POA access in places.

Financial institutions will have written policies on who to release information to after a death. Being able to show that you previously held POA is not likely to help you circumvent those policies.

Albermarle

https://forums.moneysavingexpert.com/discussion/6670028/misleading-advice-from-which-on-iht-and-pensions-from-2027

It is not the first time that Which have offered misleading/inaccurate advice in the area of personal finance.

IIRC - One instance was a misunderstanding about IHT taper rules ( not an uncommon misunderstanding but you would think they would get it right), and a wildly overoptimistic estimate of how much regular income could be generated from a pension pot of a certain size.

Perhaps they should stick to reviewing washing machines and vacuum cleaners .

BikingBud

https://forums.moneysavingexpert.com/discussion/comment/82014146#Comment_82014146

Who said anything about circumventing?

Have you tried to call a financial institution to see what might occur, both as a NOK informing death or as an enacted attorney?

Yes the LPA does terminate as the donor expires but, I would expect the person that has been nominated and enacted as the attorney to be the one informing of the death or would you suggest they abdicate the commitment to act in the best interest of the donor.

It is not breaking any law nor is it suggesting something that is wasteful or unhelpful. The community on this site recommends people to set up LPA again not law or obligatory and comments and "advice" on here may frequently be counter to what paid for legal advice might suggest, but many follow it without issue.

You can argue all you want about the process and empowerment but what you cannot deny is that having an attorney in place who is familiar with all your financial matters will greatly ease the burden upon your executor in collating that information post mortem.

The LPA provides that empowerment to ask and communicate, to explore and fully understand what and where, something you cannot do with the donor after they have died. And having garnered that knowledge then as NOK, or executor, with death certificate you will know what to ask for and from whom rather than firing off into space.

I feel your misinterpretation is linked to the fact that you have elected but one of three points of discussion that are designed to assist readers in "Simple ways to prepare for inheritance tax changes" as offered by Sir Steve Webb did you write to him and point out the error? What did he offer in response?

That is not a procedural issue that is reality.