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Investing money as an attorney under an LPA

View profile for Leah Woodnott
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The Office of the Public Guardian (OPG) has released updated guidance for attorneys who are appointed under a property and financial affairs lasting power of attorney (LPA). This is for the attorneys who are making investment decisions on behalf of someone who has lost capacity.

The OPG outlined that investments are classed as items a person buys or puts their money into, to get a profit, such as:

  • Cash savings in a bank or building society
  • Residential and commercial property
  • Shares and bonds
  • Goods bought for a profit such as cars, artwork and furniture

The OPG can investigate an attorney if they believe an attorney has misused the donor’s money. The OPG has the authority to remove an attorney from a LPA and stop them from acting.

When acting under a LPA, an attorney should also check to see whether there are any restrictions on the LPA. These could relate to investments and how an attorney can use the donor’s money.

What should an attorney consider before making an investment? 

An attorney should consider the following before making an investment:

  • How much the donor’s total assets are worth
  • Their current income and outgoings and how they could change in the future (the cost of care etc.)
  • The donor’s health, age and life expectancy

If you are thinking about making a property and financial affairs LPA and want to know how the new guidance could impact the attorneys you appoint, then Birkett Long has a team who specialises in preparing and registering LPAs. Our team is also experienced in dealing with the Court of Protection.

If you would like to discuss LPAs further, then please us for a free, no obligation 15 minute chat. I am based in our Colchester office and can be contacted on 01206 217609 or leah.woodnott@birkettlong.co.uk.

What are lasting powers of attorney? [video]

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