Investing funds as POA

Georgina63

Registered User
Aug 11, 2014
973
0
Having sold my parents' house, I now have to decide how best to look after the funds for them until they are needed for their care. Does anyone have experience of managing savings as POA and how straightforward it might be to set up new savings accounts on someones behalf? Thanks, Georgina
 

jenniferpa

Registered User
Jun 27, 2006
39,442
0
Hi there, I'm sorry you haven't received any responses. When I did this for my mother (many years ago) I mostly used investment vehicles that were available from her bank since I was out of the country and needed easily accessible options.

How straightforward it is to set up a new savings account is very dependent on the institution in question I'm afraid: some companies are far better that others. I think the first thing you need to do is work out how much can be in long term savings (which you basically can't touch until they mature) and how much you need accessible. At the time I did this, saving rates were much higher than they are now, but I did take the position that a 1% lower interest rate with a company that was easy to deal with was better than higher rates with a company that wasn't. With rates as low as they are now, though, I'm not sure I just wouldn't stuff it in a savings account at their existing bank - faffing around for an extra .5% doesn't seem worth it when you have everything else to deal with. Just make sure that any accounts held with a specific bank are covered under the fscs. Since this is limited to £85K you may need to open accounts at other institutions. In that case I would have a close look at their websites: it's not a slam dunk but on the whole those that give information about how an attorney can go about opening and maintaining an account are more likely to be geared up for it as opposed to those who don't seem to recognise that such arrangements exist. At the very least, it gives you a webpage to wave in their face if you have problems.

Best of luck.
 

Georgina63

Registered User
Aug 11, 2014
973
0
Hi there, I'm sorry you haven't received any responses. When I did this for my mother (many years ago) I mostly used investment vehicles that were available from her bank since I was out of the country and needed easily accessible options.

How straightforward it is to set up a new savings account is very dependent on the institution in question I'm afraid: some companies are far better that others. I think the first thing you need to do is work out how much can be in long term savings (which you basically can't touch until they mature) and how much you need accessible. At the time I did this, saving rates were much higher than they are now, but I did take the position that a 1% lower interest rate with a company that was easy to deal with was better than higher rates with a company that wasn't. With rates as low as they are now, though, I'm not sure I just wouldn't stuff it in a savings account at their existing bank - faffing around for an extra .5% doesn't seem worth it when you have everything else to deal with. Just make sure that any accounts held with a specific bank are covered under the fscs. Since this is limited to £85K you may need to open accounts at other institutions. In that case I would have a close look at their websites: it's not a slam dunk but on the whole those that give information about how an attorney can go about opening and maintaining an account are more likely to be geared up for it as opposed to those who don't seem to recognise that such arrangements exist. At the very least, it gives you a webpage to wave in their face if you have problems.

Best of luck.
Thanks Jennifer. I've only been looking at low risk, medium term investments (eg fixed rate bonds, premium bonds etc), offered by well known banks\institutions, that as you mention are protected by FSCS. I guess when it comes to it, I'll find out how straightforward it is to set up. Thanks Again, Georgina
 

nitram

Registered User
Apr 6, 2011
30,361
0
Bury
Try
https://www.savingschampion.co.uk/best-buys/
(disclaimer, no association, there are others)

Rates are creeping up at the moment.

The £85k FSCS is not per bank, it's per group ie Lloyds and Halifax are the same as far as the limit is concerned.

If you find a good rate that you can back out of remember that the £85k is will be increased to £1 million for 6 months after the sale of the house . https://www.fscs.org.uk/what-we-cov.../qas-about-temporary-high-balances/#question0

Some institutions other than high street banks can give you the run around when it comes to LPAs

If you have not already done sort out your LPA with HMRC
 

Georgina63

Registered User
Aug 11, 2014
973
0
Try
https://www.savingschampion.co.uk/best-buys/
(disclaimer, no association, there are others)

Rates are creeping up at the moment.

The £85k FSCS is not per bank, it's per group ie Lloyds and Halifax are the same as far as the limit is concerned.

If you find a good rate that you can back out of remember that the £85k is will be increased to £1 million for 6 months after the sale of the house . https://www.fscs.org.uk/what-we-cov.../qas-about-temporary-high-balances/#question0

Some institutions other than high street banks can give you the run around when it comes to LPAs

If you have not already done sort out your LPA with HMRC
Try
https://www.savingschampion.co.uk/best-buys/
(disclaimer, no association, there are others)

Rates are creeping up at the moment.

The £85k FSCS is not per bank, it's per group ie Lloyds and Halifax are the same as far as the limit is concerned.

If you find a good rate that you can back out of remember that the £85k is will be increased to £1 million for 6 months after the sale of the house . https://www.fscs.org.uk/what-we-cov.../qas-about-temporary-high-balances/#question0

Some institutions other than high street banks can give you the run around when it comes to LPAs

If you have not already done sort out your LPA with HMRC
Thanks so much Nitram. That's very helpful. I'll investigate! Gx
 

love.dad.but..

Registered User
Jan 16, 2014
4,962
0
Kent
I opened up 6 different savings accounts with poa for my dad and his house funds in order to keep within the £75000 protection limit as it was last year, now increased to £85000. I am risk averse and as attorney and it wasn't my money I went for albeit poor interest rates, High St banks and building societies (if you can find any these are days!). Online higher rate accounts were not open to attorneys. Had no problems with any of the institutions,all very helpful. This year as executor with probate have had no problems in gathering these funds into dads estate for distribution either.
 

Georgina63

Registered User
Aug 11, 2014
973
0
I opened up 6 different savings accounts with poa for my dad and his house funds in order to keep within the £75000 protection limit as it was last year, now increased to £85000. I am risk averse and as attorney and it wasn't my money I went for albeit poor interest rates, High St banks and building societies (if you can find any these are days!). Online higher rate accounts were not open to attorneys. Had no problems with any of the institutions,all very helpful. This year as executor with probate have had no problems in gathering these funds into dads estate for distribution either.
Thanks for that love.dad. It will be interesting to see if I can set up online - some of the accounts I've been looking at are online, so that may be an issue. I'll keep you posted! G x
 

love.dad.but..

Registered User
Jan 16, 2014
4,962
0
Kent
Thanks for that love.dad. It will be interesting to see if I can set up online - some of the accounts I've been looking at are online, so that may be an issue. I'll keep you posted! G x
I think when I looked it was more to do with the paperwork ie seeing copy of poa that some would not deal with as online accounts are that....everything has to be proven online.
 

Kevinl

Registered User
Aug 24, 2013
6,509
0
Salford
When I sold my mother's house I gave up with the idea of trying to invest it, it was all just too much trouble. Income tax on-line assessment forms, possible capital gains tax and all the rest...just not worth the aggro but house values in the NW of England aren't as high as many areas so the money involved was relatively modest compared to someone living in the SE.
My brother though buying shares in the major supermarket (the one where every little helps) and he works would be a sound investment, when he made the suggestion the shares were valued at about £4.20 per share, today they're valued at £1.88 per share.
K
 

Georgina63

Registered User
Aug 11, 2014
973
0
When I sold my mother's house I gave up with the idea of trying to invest it, it was all just too much trouble. Income tax on-line assessment forms, possible capital gains tax and all the rest...just not worth the aggro but house values in the NW of England aren't as high as many areas so the money involved was relatively modest compared to someone living in the SE.
My brother though buying shares in the major supermarket (the one where every little helps) and he works would be a sound investment, when he made the suggestion the shares were valued at about £4.20 per share, today they're valued at £1.88 per share.
K
Thanks Kevinl, I'll have to let you all know how I get on with setting up accounts either online or otherwise! None of the accounts I've looked at give much in interest, but are better than regular high street savings accounts if considering something like a two year fixed bond. I haven't considered shares as they are too much of an unknown. Looking at something low risk, short term but with some sort of return. Have to be honest, finances make me glaze over. Not my strong point (and if I'm honest, I'd rather not be having to do.....) but would like to do the best I can on behalf of my folks. Gx
 

nitram

Registered User
Apr 6, 2011
30,361
0
Bury
If you are not sure when and what funds will be needed don't forget notice accounts, you can keep giving notice and then cancelling it.
 

Georgina63

Registered User
Aug 11, 2014
973
0
Hi. I'm using an IFA for advice. He'd already advised my aunt on a low risk investment that's done well over last 4 years. He's recommended a discretionary fund manager (DFM) to invest the proceeds of the house sale. Only problem is that LPA doesn't specifically authorise me to use a DFM. So I'm in the process of applying to COP for authorisation.
Thanks @Normaleila, I hope that goes well for you. Given our circumstances, I think we will stay within the low risk savings, but it's still a bit of an unknown quantity at present as I await approval from my sibling with whom I have joint POA, complicated by us not getting on (understatement, long story!!).......Gx
 

nitram

Registered User
Apr 6, 2011
30,361
0
Bury
I await approval from my sibling with whom I have joint POA,

You have other problems as joint (not joint and several) attorneys.
Cards and internet banking are not possible, there are no systems requiring two PINs for cards or some form of multiple identity checking on line.

With the tax free £1k interest on savings you may not be looking at cash ISAs but if you do want to consider them I don't know of any that have two boxes for signatories.
 

marionq

Registered User
Apr 24, 2013
6,449
0
Scotland
Thanks @Normaleila, I hope that goes well for you. Given our circumstances, I think we will stay within the low risk savings, but it's still a bit of an unknown quantity at present as I await approval from my sibling with whom I have joint POA, complicated by us not getting on (understatement, long story!!).......Gx

The best you can get on fixed term is 2.2% for four years or thereabouts. If you take the max amount of premium bonds I have also found it averages 2% at the moment with the advantage you can get the capital back straight away if you need it and there is always a possibility of a bigger prize.

Safety is worth sacrificing a few measly percentage points. I'm definitely low risk at this stage.
 

Georgina63

Registered User
Aug 11, 2014
973
0
You have other problems as joint (not joint and several) attorneys.
Cards and internet banking are not possible, there are no systems requiring two PINs for cards or some form of multiple identity checking on line.

With the tax free £1k interest on savings you may not be looking at cash ISAs but if you do want to consider them I don't know of any that have two boxes for signatories.
Sorry, should clarify, it is joint and several, but that in itself could be an issue given sibling situation! I'm sure we'll find a solution eventually! Gx
 

Georgina63

Registered User
Aug 11, 2014
973
0
The best you can get on fixed term is 2.2% for four years or thereabouts. If you take the max amount of premium bonds I have also found it averages 2% at the moment with the advantage you can get the capital back straight away if you need it and there is always a possibility of a bigger prize.

Safety is worth sacrificing a few measly percentage points. I'm definitely low risk at this stage.
Yes agree @marionq, my Dad Invested his money well, but was definitely risk averse, so I will continue along that path. I've looked at the options you've mentioned as the most likely possibilities.
 

nitram

Registered User
Apr 6, 2011
30,361
0
Bury
Sorry, should clarify, it is joint and several,

You may still have problems with cards.
With a joint a/c it's common for all parties to have their own card.
A sole account with multiple attorneys confuses some bank employees/banks.
Ask before you jump.
 

Georgina63

Registered User
Aug 11, 2014
973
0
Yes agree @marionq, my Dad Invested his money well, but was definitely risk averse, so I will continue along that path. I've looked at the options you've mentioned as the most likely possibilities.
Thanks @nitram, I came across those and got quite excited until I realised the maximum investment is £3,000 . I will take the view any interest is better than none!
 

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