Power of Attorney

Power of Attorney

Didn't find your answer?

We have been approached by a long standing client to act as her Power of Attorney.  She's 99 and has no dependents.  Her will leaves all her estate to charity.

She has recently gone into a home and needs to sell her flat.  The balance of her estate is held in various bank and National Savings accounts.

Are there any implication to consider?  Engagement letter, Professional Indemnity Insurance and investment advice come to mind.

Replies (3)

Please login or register to join the discussion.

avatar
By IanBrewster
15th Nov 2010 12:03

Power of Attorney

 Not clear from your post whether she is intending to use a General Power of Attorney to allow you to sell the house on her behalf, or whether she is setting up a Lasting Power of Attorney.

I assume that she still has mental capacity to make a Power of Attorney.  It is worth remembering that a GPA would be revoked if she were to lose capacity.

If an LPA - Property and Affairs is being drawn up, make sure that it includes provision for the Attorney to be paid for their work and that it can be used before she loses capacity.  The LPA must be registered before it can be used and will continue if she does lose capacity.

Thanks (0)
avatar
By JSinden
15th Nov 2010 12:48

Power of Attorney

It is a Lasting Power of Attorney.  Our client has mental capacity and it includes a provision for me to be paid for my work.

The question is more whether there are any financial services implications etc.

Many thanks

 

Thanks (0)
avatar
By stevepett
19th Nov 2010 08:30

Lasting Powers of Attorney Finance

 Clearly, you need to be sure that you PII covers this activity.

There ARE financial services implications in the sense that you will be expected to ensure her money is effectively managed.  If she lives another 30 years and you leave the money in a current account or in a deposit account, you would be wide open to being sued for negligence.

But that doesn't mean you have to give Independent Financial Advice - merely that ypu should at the very least consider (and document) why you have or have not at least discussed the issue with an IFA.  For example, an impaired life annuity could potentially save the estate a fortune.

As Charities are the final beneficiary (or anyone else in these compo days) you just have to do the best you can to husband her resources without taking undue risk. If you want to be really cunning, you could always drop the charities a line with your proposed strategies for comment!

Whatever accountants have to do for normal clients, you should do for her too.

Hope that helps.

Stephen Pett

Thanks (0)