Expert answers power of attorney question regarding investment

Tony Hetherington, an expert on consumer issues, has answered a question one reader posed to Thisismoney.co.uk about power of attorney and investments.

One individual told the news source that she is administrating her late stepfather's estate, which her son is set to benefit from.

However, she said that her child serves in the armed forces and, as she holds power of attorney for him, her son wants her to invest the money he is set to receive.

She said that she asked one firm about a stocks and shares ISA and was informed that power of attorney would only be accepted is someone was disabled, a rule which looks to have been devised by HM Revenue and Customs.

The reader enquired why this was the case, to which Mr Hetherington replied that Isa providers have been asked to check a investor's identity so that people cannot open several using different names.

He said that in some instances a power of attorney would be fine, such as if an investor is mentally disabled, but added that Isa providers may not accept this if an investor is simply on holiday or busy.

However, he added that the reader may wish to apply to an Isa provider that does not require her son's signature.

People may also wish to set up a lasting power of attorney so that someone they trust can act on their behalf if they are unable to


Published by Hannah Carr