Over 65 nsandi bonds, with power of attorney?

Discussion in 'Legal and financial issues' started by Raggedrobin, Jan 16, 2015.

  1. Raggedrobin

    Raggedrobin Registered User

    Jan 20, 2014
    1,432
    i want to apply for the nsandi bond that has just been issued, for my mother, as these are the best interest rates going for the over 65s at the moment. I would be doing it with PoA. I tried filling out the form online but wasn't sure if I should just put her name or mine. Tried ringing, couldn't get through. Anyone else attempting to apply with PoA, be pleased to hear how you do it.
     
  2. Pete R

    Pete R Registered User

    Jul 26, 2014
    2,046
    Staffs
    I would leave it a week or so for them to get up to speed.....

    This is from there T&C's in the brochure. Just use your Mother's name.

    http://www.nsandi.com/65-guaranteed-growth-bonds

    20. Attorneys An individual of at least 16 years
    of age may also purchase Bonds in the name of
    another individual of at least 65 years of age
    where acting under a valid Power of Attorney.
    21. Deputies A person who is legally entitled to
    make investments on behalf of a person of at least
    65 years of age who lacks capacity may purchase
    Bonds on behalf of, and in the name of, that person.

    :)
     
  3. nitram

    nitram Registered User

    Apr 6, 2011
    18,391
    Male
    North Manchester
    #3 nitram, Jan 16, 2015
    Last edited: Jan 16, 2015
    You can only purchase a Pensioner Bond using a POA if done by post, it cannot be done online or by phone. The bond must be in the donor's name

    To start the process you need a special form which can only be received by post.

    You just have to keep ringing the customer service number 0500 007007 or, if you are good at blagging, the one reserved for financial advisers 0800 092 1228. I always used the agent route when dealing with HMRC in respect of my wife claiming that with POA I was her agent, I never had any problems and got through quickly to a sensible agent.
     
  4. nitram

    nitram Registered User

    Apr 6, 2011
    18,391
    Male
    North Manchester
    "...This is from there T&C's in the brochure. Just use your Mother's name..."

    This will cause problems when, as part of the process, the OP receives a document through the post which requires signing.

    I've now obtained a copy of the application for a pensioner bond by an attorney - pdf attached.
     

    Attached Files:

  5. Raggedrobin

    Raggedrobin Registered User

    Jan 20, 2014
    1,432
    That's brilliant, thank you very much for your help. Mum has a bond that is coming to an end in a couple of weeks, I know they are saying the bonds will run out quickly but so be it if that happens in the mean time.
    I wonder what happens interest-wise if the person who owns the bond dies before the time period is up? I suppose you just lose 90 days interest? Couldn't find that in the small print but relevant to buying bonds over a certain age I would think.
     
  6. Wirralson

    Wirralson Account Closed

    May 30, 2012
    661
    I am facing that issue now as an executor. In England and Wales, basically, if a bondholder dies, then the bond is another asset of the estate. The exceutor is bound to liquidate the estate for distribution within a reasonable timescale and in accordance with the Will and / or the rules of intestacy under the Administration of Estates Act. What happens for each instrument depends on the terms and conditions of the investment, but yes, you could lose 90 days' interest. Some p[roducts (not just NS&I ones) have a notice period. This is usually well within the timescale for administering an estate.

    W
     
  7. nitram

    nitram Registered User

    Apr 6, 2011
    18,391
    Male
    North Manchester
    "Mum has a bond that is coming to an end in a couple of weeks"

    If she has an NS&I identity number for phone and internet use this will help.

    "I wonder what happens interest-wise if the person who owns the bond dies before the time period is up? I suppose you just lose 90 days interest?"

    No, and in the case of a POA, which will lapse on the death of the donor, interest may well continue until the executor has probate giving them authority to administer the estate.

    48 No penalty will be charged:
    (a) where a Bond is cashed in at the end of its
    original term, or at the end of any further
    term*(see paragraph 75), and we received the
    instruction to cash in by the date and time
    specified in the pre-maturity notice;
    (b) where an instruction to cash in is given after the
    death of a sole, or last surviving, Bond holder;
    (c) where a Bond is cashed in as a result of a
    detrimental change to the terms and conditions
    applying to the Bond (see paragraph 109).

    http://www.nsandi.com/files/published_files/asset/pdf/65-guaranteed-growth-bonds-brochure.pdf

    I would get the application complete with cheque off as soon as possible, if bonds run out they could well acknowledge your application date and wait till the formalities are over before issuing a back dated bond.

    Also go for the 3 year even if you think you may need the cash before them as the good rate means that you can cash in, take the 90 day hit, and still end up better than elsewhere.

    Note that you don't have to cash in the whole of the bond, just leave a minimum of £500

    When you cash in part of your Bond, at least £500 must remain in the Bond to keep it open.

    Drill down
    http://www.nsandi.com/65-guaranteed-growth-bonds
     
  8. nitram

    nitram Registered User

    Apr 6, 2011
    18,391
    Male
    North Manchester
    "...I am facing that issue now as an executor..."

    I was in that position just under two years ago and found that some financial institutions did not have a clue. One well known one refused to supply me with the details of both interest accrued and credited and interest accrued but not credited at DOD until I obtained probate. My first complaint earned me a case of wine followed by a second case when they messed it up a second time!!!
     

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