Q. Last week you mentioned the reduction in the amount protected if a bank goes bust from £85,000 to £75,000 from 1st January 2016. I am worried because I am currently acting as executor for my late brother, and we have to gather together all his assets from different sources into one account before distributing them between the beneficiaries. If the bank we are using gets into difficulty, the beneficiaries could hold us responsible, but as I see it we have no choice. Is there anything we can do?

A. This issue, and similar ones, have been recognised by the Financial Services Compensation Scheme (FSCS). With effect from 3rd July 2015, a higher protection limit of £1million applies to temporary high balances connected to certain life events, including property transaction, death benefits, redundancy etc. The protection is limited to a period of up to six months, and a full list of the events which are considered as “major life events” is set out on the FSCS website at www.fscs.org.uk.

Q. I have a Will as has my wife, but our adviser also recommends taking out Lasting Power of Attorney (LPA) for each other. Do we simply approach the same solicitor who set up our Wills or can we do them ourselves?

A. It is good to hear that you have sorted out your Wills. An LPA is definitely the next step, and is designed to help if you have not died, but have lost through mental capacity the ability to look after your financial affairs. The LPA gives another individual the legal authority to look after your finances, and/or your health and welfare. Many choose to use a solicitor as the process can be quite complex, however it is possible to do it yourself. We would strongly advise using a solicitor, as just like a will, getting it wrong can be worse than not having one in the first place.

 

If you have a question you would like Trevor to answer, please email it to: yourmoney@rwpfg.co.uk or post it to Your Money, Rutherford Wilkinson Ltd, Northumbria House, 21-23 Brenkley Way, Blezard Business Park, Newcastle upon Tyne, NE13 6DS.

0191 217 3340