Page 8 - Town & Around - November 2021

8 Town & Around November 2021 Tel: 01485 540620 email: editor@townandaround.net
Managing financial affairs under a lasting power of attorney

By Susan Dayment, Associate Solicitor, Hayes + Storr
aking a lasting power of attorney There may also be times where your interests
(also known as an LPA) for your could conflict with theirs.
Mfinances is an important part of
lifetime planning. An LPA should be set up Careful considerations
well in advance of when it might be needed, • You can decide when your LPA comes into
force.
although it can be difficult to predict when • Your attorneys must always act in your best
that might be. If in the future you have an interests.
accident or illness, like dementia, an LPA • You may need to include specific
enables other people (your attorneys) to help instructions to extend your attorneys’ powers.
make decisions on your behalf. • You should appoint more than one attorney
In addition to managing bank accounts and or replacement attorneys who would step in if
selling property, an LPA clarifies your wishes your first choice of attorney can no longer act
on a wide range of financial decisions, for you.
including if you have a business or complex For further information, please contact
investments. Susan Dayment on 01328 863231 or email
susan.dayment@hayes-storr.com.
Funds This article is for general information only
You may have investments in certain funds and does not constitute legal or professional
which require your express consent or advice. Please note that the law may have
discretionary management funds to be set up changed since this article was published.
before your attorneys can be authorised to
deal with them.
Overseas assets
If you hold overseas assets, an LPA made in
England and Wales may not be recognised by
the jurisdiction in which those assets are held.
You will need legal advice for each
jurisdiction to ensure your attorneys can act
on your behalf in the different territories.

Gifts
Attorneys can make small gifts in limited
circumstances on your behalf, but you may
authorise them to make larger or more regular
gifts. For example, you may wish to make
such gifts for tax planning purposes, or
because you would like to provide financial
assistance for family members who need extra
support. Whatever the reason, you will need
to include a specific authority to allow such
gifts to be made.
Dependants
You may be concerned about a family
member or another dependant who relies upon
you financially, especially if they are unable
to manage their own finances.

Business assets
If you have any interest in a business, you
should ensure that the appointed attorneys
have the necessary insight and business
acumen to continue to run things smoothly. If
you wish to appoint separate attorneys for
your business decisions, you will need to
make two separate financial lasting powers of
attorney, one for your personal financial
decisions and one for your business decisions.
Avoiding common mistakes
Many people choose to appoint the friends or
family closest to them without considering
whether they are suitable for the role. If they
are not good with their own money, think
carefully about trusting them with yours.