10 March 2021

Does your Lasting Power of Attorney reflect your wishes?

We included an article in 2019 about a change from the Office of the Public Guardian (OPG) who have revised their guidance in relation to managing investments on a discretionary basis for clients with a Power of Attorney in place

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.

Understanding Finance

Helping clients understand what we do is key to building relationships. To explain some of the industry jargon that creeps into our world, we’ve pulled together a section of our site to help.

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