What does a Property and Financial Decisions Lasting Power of Attorney cover?

A Property and Financial Decisions Lasting Power of Attorney (LPA) is a legal document that allows you to appoint one or more trusted people (known as your attorneys) to manage your financial affairs if you need assistance now or lose mental capacity in the future.

A Property and Financial Decisions LPA can allow your attorneys to:

• Manage your bank and savings accounts.
• Pay bills and household expenses.
• Buy or sell property on your behalf.
• Manage investments and other financial assets.
• Deal with pensions, benefits and tax affairs.

It does not cover decisions about your health, care or medical treatment. These decisions require a separate Health and Welfare Lasting Power of Attorney.

LPAs are governed by the Mental Capacity Act 2005 and must be registered with the Office of the Public Guardian before they can be used.

Whether you are considering putting a Property and Financial Decisions LPA in place or have been appointed as an attorney, it is important to understand exactly what powers and responsibilities it provides.

Managing bank accounts and finances

Attorneys can:

• Access and operate bank accounts.
• Pay bills and manage regular outgoings such as utility bills, insurance premiums, care home fees or in-home care costs.
• Monitor income, including pensions and benefits, and liaise with these organisations on the donor’s behalf.
• Manage investment portfolios.
• Buy and sell stocks and shares.
• Move funds between the donor’s accounts.

Attorneys must ensure that all decisions are made in the donor’s best interests.

Handling property transactions

Your attorney can:

• Buy or sell property on your behalf, such as moving you to a smaller home or selling your home to help cover long-term care costs where appropriate.
• Manage rental income.
• Arrange maintenance and repairs to your property.

Dealing with tax affairs

Your attorneys are authorised to:

• Complete and submit tax returns on your behalf.
• Communicate with HMRC (they will usually need to see the registered LPA first).
• Pay any tax liabilities.

When can a property and financial decisions LPA be used?

A Property and Financial Decisions LPA can be used either as soon as it has been registered (if the donor still has mental capacity but would like assistance managing their finances) or only once the donor has lost mental capacity.

This is a decision made by the donor when the LPA is created.

What doesn’t a property and financial decisions LPA cover?

A Property and Financial Decisions LPA does not cover:

• Medical treatment decisions.
• Care decisions.
• Living arrangements.
• Life-sustaining treatment decisions.

These matters are covered under a Health and Welfare Lasting Power of Attorney.

Where different attorneys have been appointed under separate LPAs, they will often need to work together to ensure decisions are made in the donor’s best interests once mental capacity has been lost.

Why is having an LPA important?

Having a Property and Financial Decisions LPA in place is one of the best ways to ensure that, should you become unable to manage your financial affairs in the future, you have already appointed someone you trust to make decisions on your behalf.

If you are interested in putting a Lasting Power of Attorney for Property and Financial Decisions, Health and Welfare Decisions, or both in place, our Wills and Probate team at Thorneycroft Solicitors will be happy to assist.

Contact us today on 01625 503444 or email [email protected].

Written by Alicia Owens, Paralegal in our Wills and Probate team.