Responsible investing to meet the objectives of a Power of Attorney

Susannah* had been given Power of Attorney for Mr West*, who was being cared for in a care home. She came to us as she needed advice on the best way to approach both her responsibilities and Mr West’s wealth. She was keen to fulfil her duties and wanted to ensure she fully understood her duties as his Attorney.

Mr West had inherited some money from his parents and had substantial wealth that needed to be managed under the Power of Attorney.

Even after covering the costs of the care home, there was still significant wealth remaining. Susannah felt she needed to better understand what needed to happen to this wealth, what scope she had in making gifts and what restrictions there were. It was also important for her to understand her options, for example, in applying to the Court of Protection.

Our recommendations needed to ensure Mr West’s ongoing income needs would continue to be met and also to enable him to be as comfortable as possible. The latter needed to take account of the fact that we might need to provide further capital for any other expenses that might occur.

After we had earmarked this portion of Mr West’s wealth, we were able to advise that the remaining amount was invested in a tax efficient manner. Whilst doing this we also ensured the choices we were recommending to Susannah fell within the Power of Attorney Investment Remit

By dividing the investment in this way, Susannah met her duties by providing Mr West with a guaranteed income stream. It also allowed her as the Attorney to invest the remaining assets in a manner that would allow investment growth. This meant that she could do some succession planning to ensure the ongoing wishes of Mr West were fulfilled.

 

*Names changed

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