What to do when you need to use a Lasting Power of Attorney
A Lasting Power of Attorney (LPA) can provide invaluable support when someone needs help managing their affairs. However, when the time comes to use an LPA, many attorneys are unsure where to start.
Whether the donor has lost mental capacity or simply requires assistance managing their finances, there are several practical steps that attorneys may need to take before they can begin acting on the donor’s behalf.
Check that the LPA has been registered
Before an attorney can act, the LPA must have been registered with the Office of the Public Guardian (OPG).
If the LPA has not been registered, an application will need to be made to the OPG before it can be used. Once registration has been completed, the LPA becomes legally valid.
If you are unsure whether an LPA has been registered, it is important to check before contacting banks or other organisations.
Contact the donor’s bank
One of the first tasks for many attorneys is dealing with the donor’s bank accounts.
Although the LPA may already be registered with the OPG, most banks and building societies will need to carry out their own registration process before they will allow attorneys to access accounts or provide instructions.
Each bank has its own procedures, but you will usually be asked to provide:
- The registered LPA
- Proof of identity for the attorney
- Proof of identity for the donor, where required
- Any forms requested by the bank
Some banks may arrange an appointment to verify documents, while others offer online or postal services.
It is worth contacting the bank as early as possible, as registration can take time.
Online activation service
In more recent years it has become possible to use the LPA via the GOV.UK online service to record LPAs with financial organisations.
Provided the LPA was registered with the OPG after 1 January 2016, the online service can be used to generate access codes for the bank or other financial organisations. This enables the bank to access an online summary of the LPA. Importantly, it means that you do not have to present the original LPA to the bank, which is not recommended in case it is damaged, destroyed or lost.
Understand our responsibilities as an attorney
Acting as an attorney carries significant responsibilities.
Attorneys must always act in the donor’s best interests and make decisions that benefit the donor rather than themselves or other family members.
This includes:
- Keeping the donor’s money separate from their own
- Maintaining accurate financial records
- Consulting the donor wherever possible
- Following any instructions or preferences contained within the LPA
Attorneys should also ensure that they only act within the powers granted to them by the LPA.
Keep records
Good record keeping is essential.
Attorneys should keep copies of correspondence; details of decisions made on behalf of the donor and records of any financial transactions undertaken.
This can help demonstrate that the attorney is acting appropriately and in the donor’s best interests.
Seek professional advice where necessary
Managing someone’s affairs can sometimes be complex, particularly where property, investments, care funding or tax issues are involved.
Attorneys do not have to navigate these challenges alone. Professional advice can often help ensure that decisions are made correctly and in accordance with the attorney’s legal duties.
At Barker Gotelee, we regularly assist donors and attorneys with the practical aspects of using a Lasting Power of Attorney.
Angela Ireland is a Senior Associate in the Private Client Team at Barker Gotelee Solicitors in Suffolk.
If you would like more information about LPAs, please call our Private Client Team on 01473 611211, or fill in our enquiry form below.
