Investing funds as POA

[Georgina63]

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.

Again, thanks. I think this was in my mind at the start of the thread as, given the circumstances, I would obviously would want this all to be totally transparent. Why is life so complicated at times? I guess I will find out how tricky it is when I try to set something up.......I will make sure I take a good deep breath first.

 

[marionq]

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!

Yes I did that too. Took one out but thought the amount was quite paltry.

 

[nitram]

Yes I did that too. Took one out but thought the amount was quite paltry.

Not as good as the NS&I 'pensioner bond' £10k at 4.0% for 3 years that matures in January.

 

[love.dad.but..]

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

The choice narrows because as someone has said institutions are linked for protection limit purposes. I opened a combination of different types of account....fixed term at better rates, 60 day notice, maxed dads iSA, premium bonds and easy access savings so I knew I could lock away quite a bit whilst having access to savings for care for next two years taking into account any fee increases. Dad was a taxpayer. I feel I researched well and did the best risk free for him, I didn't want to do this but some like Nationwide offer lower risk investments but it is restricted by age and Dad at 85 wouldn't be considered ....responsible lending protocol.

 

[fortune]

The OPG have issued basic guidance in the past on this. Could be helpful to reference if there are difficulties in approach with the other attorney. I used an IFA and ran it all past the accountant as well. It depends how much money you are dealing with but, unless you have specialist knowledge yourself, it is a good idea to take some professional advice. You are less likely to make a poor investment decision but if you do and then find yourself being criticised you'll have some defence.

 

[Georgina63]

The OPG have issued basic guidance in the past on this. Could be helpful to reference if there are difficulties in approach with the other attorney. I used an IFA and ran it all past the accountant as well. It depends how much money you are dealing with but, unless you have specialist knowledge yourself, it is a good idea to take some professional advice. You are less likely to make a poor investment decision but if you do and then find yourself being criticised you'll have some defence.

Thanks @fortune. Maybe the route you suggest, to use an IFA may ease the situation, which I shall bear in mind.

 

[Georgina63]

The choice narrows because as someone has said institutions are linked for protection limit purposes. I opened a combination of different types of account....fixed term at better rates, 60 day notice, maxed dads iSA, premium bonds and easy access savings so I knew I could lock away quite a bit whilst having access to savings for care for next two years taking into account any fee increases. Dad was a taxpayer. I feel I researched well and did the best risk free for him, I didn't want to do this but some like Nationwide offer lower risk investments but it is restricted by age and Dad at 85 wouldn't be considered ....responsible lending protocol.

Hi @love.dad.but.. sounds like a very similar scenario. Thanks for the advice. Gx

 

[love.dad.but..]

Hi @love.dad.but.. sounds like a very similar scenario. Thanks for the advice. Gx

My concluding phrase should have read responsible savings protocol not lending but I expect you knew what I meant. It is a huge responsibility to make your parent's funds work for them in the best way but as you start you will find like me interest rates and institutions fall into place. The requirement to be diligent still means you have scope to do the best you can and I took the view getting .25% or so more in interest was neither here nor there as the taxman would take a big clump of any interest earned. Dad was likely to be a self funder for some time but I didn't feel locking away too much in longer periods than 2 years was the right thing to do for him. As it happens he passed away less than a year after his house sale but I always felt I had got him the best rates possible and could easily justify my actions to oPG if ever required to do so.

 

[Shedrech]

hi Georgina63
I don't know how much you are dealing with (and don't tell us) - just keep in mind that an Attorney is only really required to consolidate any finances and spend them in the best financial interest of the donor, there's no specific 'duty' to actively work the funds to make a massive return (hardly likely in the current economic climate) - so as long as you keep the assets safe no-one will question your actions
I'm afraid I took the decision that dad always kept things simple, and as his income at the moment covers the care home fees (good on him for being so sensible about his pension arrangements), I have maxed his ISA contribution and just kept the rest in easy access accounts - for him, even a current 'high' interest rate will only add a couple of months worth of fees to the total!

 

[Georgina63]

hi Georgina63
I don't know how much you are dealing with (and don't tell us) - just keep in mind that an Attorney is only really required to consolidate any finances and spend them in the best financial interest of the donor, there's no specific 'duty' to actively work the funds to make a massive return (hardly likely in the current economic climate) - so as long as you keep the assets safe no-one will question your actions
I'm afraid I took the decision that dad always kept things simple, and as his income at the moment covers the care home fees (good on him for being so sensible about his pension arrangements), I have maxed his ISA contribution and just kept the rest in easy access accounts - for him, even a current 'high' interest rate will only add a couple of months worth of fees to the total!

Thanks @Shedrech, that's a really good way to think of it. Likewise, Dad did well with his savings, but in a very conservative, low risk way. I think part of the issue that I have is that I have to get everything agreed by my sibling with whom I have a strained relationship and this is adding to the stress. If it was down to me alone, I would simply go ahead and do exactly as you have suggested. That said, I don't yet know my siblings wishes as they have not been forthcoming. Say no more!! Gx