ISAs, other savings and LPAs … confusion

[Annie C]

The confusion isn’t mine - well I don’t think it is - but I am being told the following by someone else and am in need of input from others please.

Re. the LPA … there are two attorneys who can act jointly or severally, but the donor still has capacity and so I understand that the attorneys can act only with the donors knowledge and permission, as his deputies.

Re. the ISAs … I am being told that ISAs can be opened by the attorneys in their own names using the donors capital. Surely this is only possible if the sums concerned are gifted by the donor (who, as I said, still has capacity) to the attorneys, which obviously would have tax implications for all parties?

Re. the other savings … an NS&I Saver account has been opened in the name of the donor and one of the attorneys, with the statement that the attorney is an “additional name”. Am I right in thinking that this must actually be a joint account? It is certainly not an attorney/donor account with the attorney’s authority registered.

I’d be really grateful to anyone who can help me understand the in’s and outs of all this

 

[nitram]

I'm confused.
Why is the donor with capacity taking all the actions themselves?
The attorneys can give advice.

 

[Annie C]

I'm confused.
Why is the donor with capacity taking all the actions themselves?
The attorneys can give advice.

The donor is in his late 90s and has issues reading small print, using telephones etc. etc. so needs deputies, and the LPA is being used to show that the deputies (who are also the attorneys) have permission to act on his behalf. But the donor is still competent to make his own decisions. I quite agree that it is the attorneys job to advise but action is then being taken without the knowledge or consent of the donor.

 

[Jaded'n'faded]

Attorneys are not allowed to benefit in any way from their position.

Really, if they are acting for the donor, there should probably be no gifts of any sort to anyone (other than maybe the sort of birthday/Christmas gifts that have been given in the past.) even if the donor wants to do that. But much depends on how much money the donor has.

 

[try again]

Lpa , it depends on the wording on the lpa and how it was taken out. You can specify one or multiple lpa's.
There is an option to take over straightaway or when capacity is gone. I don't know but would suspect doctor/ solicitor would have to determine when capacity is gone if that was the option chosen
If more than one lpa then there is the option for them to have to act together or be able to act independently. You need to check on the lpa wording as it was set up

A person with lpa can open and close accounts etc BUT the account MUST be in the name of the PWD only. The lpa is named as the administrator and has access to it but should not be named as owner of the account. Any cards you hold for PWD will have the lpa name and be registered at the lpa address .
As said, as lpa you manage the accounts but cannot profit from them. It is not your money. And as things can be checked you need to insure the accounts and spending and handled independently from the lpas accounts and be able to show the accounts have been cared for properly by the lpa.

 

[Annie C]

Attorneys are not allowed to benefit in any way from their position.

Really, if they are acting for the donor, there should probably be no gifts of any sort to anyone (other than maybe the sort of birthday/Christmas gifts that have been given in the past.) even if the donor wants to do that. But much depends on how much money the donor has.

Thank you, this is what I have assumed myself.

 

[Annie C]

A person with lpa can open and close accounts etc BUT the account MUST be in the name of the PWD only. The lpa is named as the administrator and has access to it but should not be named as owner of the account. Any cards you hold for PWD will have the lpa name and be registered at the lpa address .

This is what is confusing me re. NS&I … it is possible for an attorney to open an account on behalf of the donor but if they do proof of authority is required, otherwise - unless someone can tell me different - as far as I can see an account with two names on it is a joint account which is what seems to have been opened here.

Thank you for your detailed reply.

 

[nitram]

an NS&I Saver account has been opened in the name of the donor and one of the attorneys, with the statement that the attorney is an “additional name”

You need to query with NS&I precisely what this means?
Additional name could mean a person other than account holder authorised to administer account.

 

[Scarlet Lady]

Hello, I admit to being puzzled by this thread. Has it changed its name or is it a continuance of another thread? Sorry to sound thick, but there are things mentioned which don’t seem to be covered in the original post.
For what it’s worth, my view would be that whether the donor has capacity or not, all accounts should be in his/her name with access and admin granted to the attorneys.

 

[SAP]

This is what is confusing me re. NS&I … it is possible for an attorney to open an account on behalf of the donor but if they do proof of authority is required, otherwise - unless someone can tell me different - as far as I can see an account with two names on it is a joint account which is what seems to have been opened here.

Thank you for your detailed reply.

Yes an attorney can open an account I did one for my mum ( for premium bonds) The account is in her name and all information is sent c/o myself. They needed to see the LPA for finance ( which I was able to do with the identification number for the LPA)

 

[SAP]

DH has LPA for his mother and needed copy of premium bond holdings for fianancial
Assessment - NS&i didn’t seem to fully understand but DH sent copy of LPA. The result is the certificate now has his name on, but the are not his P Bonds. It looks odd, maybe NS&i systems can’t find a way to record LPA any other way? If MiL has a win we assume she will be informed…. Which is via my email
Address as she doesn’t have an email. Confusing.

Mums winnings are sent to me via a cheque made payable to my mum. I pay them into her accounts that are in her name only, which I can do as attorney.

 

[Banjomansmate]

Six years ago I sent NS&I Premium Bonds my LPA for The Banjoman, requesting a list of his holdings and they just sent the list to me as requested. Any winning cheques with his name on were sent to my address and I paid them into his bank account.