www.iva.co.uk

Hi all, hope you're well,
Bit of a legal one if anybody can help.
Four months into my IVA now and all is going well, so...
Can I act as power of attorney on behalf of a family member whilst in an IVA?
Thanks,
Kitty

Hey Kitty, I have no idea but I'm sure an expert or someone who does know will post shortly. I would have thought so. Viki X

Thanks Viki,
I'll hang around a while x

It ought not be a problem but can you enlighten us on the purpose?

I assume if you are handling money it will be as a quasi trustee and not in your own right?

Ian

Hi Ian,
Said family member off to prison in a few weeks unfortunately!
I am executor of my late Mother's estate, and we want to get the house that she left us on the market soon.
He also has creditors on his tail (owes about 12k), so we were wondering if he could pass this over to me and I could ensure that the creditors got their money when the house is sold?
All a bit complicated!
Thanks,
Kitty

Hi Kitty

Basically you are dealing with 2 lumps of trust money (one more formal than the other of course). I don't see an IVA giving you a problem in you acting as executor of your mum's estate or as your brother's attorney, unless the proposal says you can't, which I see as being highly unlikely. However:

1. There could be a potential conflict of interest between the 2 roles - say for example one of your brothers creditors became over-aggressive and as a result you paid him before the other beneficiaries of the estate, without their express consent, you will have breached your duty as executor. This is a formal role, akin to mine as an IP due to every penny being trust money, and it's a Court appointment. So you may need to exercise some caution here.

2. You must keep both lumps of money in separate pools and certainly not mixed with your own. That means a separate bank account for each role, I recommend.

3. I assume you are also a beneficiary? Obviously you are alive to whatever windfall provisions apply to your IVA.

Good luck with this. Having been an executor on 2 occasions I can tell you it's quite onerous so if you want some pointers come back.

Ian

Thanks Ian,
Now I'm having second thoughts!!
Just to clear part of this up, half the house will go to my x-stepfather's creditors, this has all been sorted by a very good solicitor, and his creditors have OK'd the sale of the house.
The other half will be split between myself and my two brothers.
My portion will go to my creditors, and this is all written into my IVA, so hopefully no problems there.
I may get back to you if that's OK, but off to bed now to do some more worrying.
I can only assume that I was a complete b***h
in a previous life
Kitty

Poor you Kitty ... Karma and all that eh! I know just how you feel, I am beginning to truly believe in the saying "as one door closes, another slams shut in your face!" ... I do hope you get all this sorted out and I just wanted you to know that my thoughts are with you.

Debbie

Ian,
Hoping you can pick this one up and let me know whether my plan sounds realistic?
Here's the masterplan..
I did set up an executors account after Mum died.
I have also kept my IVA company informed of the situation with half the proceeds of the house going to my x-stepfather's creditors who are HMCE.
His creditors have agreed to the sale of the house, and their share being paid to them when the house is sold.
A specific amount is quoted in my IVA to go to my creditors on sale of the house, based upon a valuation of the house (a sixth share).
My other brother is aware that I will be my brother's attorney, and is fine with this.
I was going to put all of the proceeds from the house into the executors account and then split it as follows.
Half to Stepfather's creditors, a sixth into brothers one and two's accounts and the final sixth into my account.
Pay my creditors their share (With proof of the amount of my share going to my IP) and pay off my brother's creditors from his account as his attorney, (as this will be less than the overall amount that he should receive).
Does this sound realistic and viable?
Thanks for any advice,
Kitty.