Power of attorney can't be used to invest in ISA
by Daniel Jones
Being granted power of attorney
does not give people the ability to make an investment in an Isa on behalf of another person, it has been explained.
One reader of This is Money explained that she had been dealing with her late stepfather's estate, from which her son is a beneficiary.
However, he is in the Armed Forces and has asked his mother to invest the money on his behalf, which she had hoped to achieve through a stocks and shares Isa.
HM Revenue and Customs will not allow this because the identity of the investor needs to be verified, as people can only hold a certain number of such tax-free investments.
Expert on consumer issues Tony Hetherington explained that in some situations, an Isa can be opened with power of attorney
, but only if the individual is physically or mentally disabled.
As neither of these is the case, the reader was informed that the rules would still stand.
Published on: August 9, 2011
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