Property & Financial Affairs LPA

 

Property and Financial Affairs, which gives the Attorney the authority, for example, to buy or sell property and make payments on behalf of the Donor

 

A Donor will often appoint a family member or friend to be responsible for making decisions for them in the future. It is possible to appoint one person to act, or to name more than one person and specify different areas that each can make decisions about. It is also possible to specify those decisions that should be made jointly by two or more attorneys.

 

A Property and Financial Affairs LPA can be set up to come into force as soon as it is registered, or the Donor can put in place a provision so that the LPA can only be used if they lack mental capacity. It gives the Attorney the authority to deal with the following areas, unless restrictions are put in place by the Donor at the time of taking out the LPA:

  • Dealing with bank accounts and other finances
  • Claiming, receiving and using all benefits (on the Donor’s behalf)
  • Dealing with the Donor’s tax affairs
  • Receiving income or inheritance for the Donor
  • Buying and selling property
  • Making limited gifts on the Donor’s behalf


Restrictions exist by law in many of these areas to protect the Donor. For instance, gifts are limited to customary gifts the Donor may have been expected to make (eg. birthday gifts to relatives) and must not be unreasonable in size when taking account of the Donor’s financial circumstances.


Importantly, an Attorney is under an obligation only to act in the Donor’s best interests at all times, and various safeguards exist to ensure this.

LPA Instructions & Preferences

Introduction

The only circumstances in which you must write an instruction is in a financial LPA if:

  • you have investments managed by a bank and want that to continue
  • you want to allow your attorneys to let a bank manage your investments

Preferences
are what you’d like all your attorneys to think about when they make decisions for you. Your attorneys don’t have to follow them but should bear them in mind. 
If you write any preferences, avoid words such as ‘must’ and ‘shall’. Instead use words such as ‘prefer’ and ‘would like’, so it’s clear that you’re giving your attorneys advice. If your attorneys must do something, include it in your instructions.


Examples of preferences 

Health and welfare LPA

Here are some examples of preferences you might write in a health and Welfare LPA: 
“I prefer to live within five miles of my sister.” 
“I’d like to be prescribed generic medicines where they are available.” 
“I would like to take exercise at least three times a week whenever I am physically able to do so. Whether or not I am mobile, I would like to spend time outdoors at least once a day.” 
“I’d like my pets to live with me for as long as possible – if I go into a care home, I’d like to take them with me.”
“I’d like to have regular haircuts, manicures and pedicures.”


Property and financial affairs LPA

Here are some examples of preferences you might write in a financial LPA: 
“I like to reinvest all interest from each year’s investments into next year’s ISA allowance.” 
“I would like to maintain a minimum balance of £1,000 in my current account.” 
“I prefer to invest in ethical funds.”
“I’d like my attorneys to consult my doctor if they think I don’t have the mental capacity to make decisions about my house.” 
“I would like to donate £100 each year to Age UK.”


Instructions 
tell your attorneys what they must do when acting on your behalf. If you write any instructions, use words such as ‘must’, ‘shall’ and ‘have to’. 
Instructions cause more problems than preferences. If you want to give instructions, read through the information below to find out about common problems and mistakes. It may be better to phrase them as preferences.
There are some examples below of common preferences and instructions for both types of LPA. They may not be right for you – they are just to give you an idea of what you might write. Your preferences and instructions should be about what matters to you.

 

Examples of Instructions

Health and welfare LPA

Here are some examples of instructions you might write in a health and care LPA:
“My attorneys must not decide I am to move into residential care unless, in my doctor’s opinion, I can no longer live independently.” 
“My attorneys must not consent to any medical treatment involving blood products, as this is against my religion.” 
“My attorneys must ensure I am given only vegetarian food.”

 

Property and financial affairs LPA

Here are some examples of instructions you might write in a financial LPA: 
“My attorneys must consult a financial adviser before making investments over £10,000.” 
“My attorneys must not sell my home unless, in my doctor’s opinion, I can no longer live independently.” 
“My attorneys must not make any gifts.” 
“My attorneys must continue to donate to charities that I have supported or for which I have set up standing order payments.” 
“My attorneys must send annual accounts to my brothers and sisters.” 
“My attorneys must instruct a tax accountant to prepare my annual tax return.” 
“This lasting power of attorney only applies if a doctor confirms in writing that I don’t have the capacity to make decisions about my finances.”