The latest guidance requires a specific instruction is set out in the deed, which allows:
- An existing discretionary management scheme to continue;
- and The transfer of investments into a discretionary management scheme
If your current Lasting Power of Attorney (LPA) deed has no such instruction in place, we, as the discretionary manager, would be unable to continue managing the investments on a discretionary basis in the event the donor loses mental capacity. To change the situation, it is necessary to obtain an updated LPA, which can be done by applying to the OPG.
The OPG has suggested that the following wording be included in the Special Instructions section of the deed:
"My attorney(s) may transfer my investments into a discretionary management scheme. Or, if I already had investments in a discretionary management scheme before I lost capacity to make financial decisions, I want the scheme to continue. I understand in both cases that managers of the scheme will make investment decisions and my investments will be held in their names or the names of their nominees."
It would be prudent to seek your own legal advice in relation to making a new power of attorney application and the extent of the wording used and we would urge you to do so to ensure your wishes are reflected as and when the LPA comes into effect.
