Can I make gifts out of someone’s funds when I am acting as their attorney?

6th January 2020

Can I make gifts out of someone’s funds when I am acting as their attorney?

An attorney is someone appointed by a Power of Attorney to make decisions on another individual’s behalf. These can be financial decisions or decisions about health and welfare. The most common type of powers of attorney are called Lasting Powers of Attorney (LPA).

The rules about making gifts out of someone’s funds are limited, so it is key that attorneys understand the scope of their powers before acting.

In law, an attorney acting under a property and financial affairs LPA can make gifts on “customary occasions” – for example birthdays or Christmas. Such gifts must either be to someone connected with the person whose money is being gifted, or to any charity which he or she made or might have been expected to make gifts. When it comes to the size of any such gift, it must be ‘not unreasonable, having regard to all of the circumstances, and in particular the size of the individual’s estate’.

In addition, LPAs often include express wording indicating that the attorney may use the individual’s funds to make gifts. The wording used for these expressions varies widely. Therefore, the Office of the Public Guardian (OPG) has recently bought a group of test cases, which have resulted in a series of clear rules that persons appointed as attorneys in England & Wales can use when deciding whether they can make gifts.

If an attorney wishes to make a gift that does not fall within the limitations imposed by law or the LPA itself, he or she will need to make an application to the Court of Protection for authority to do so.

If an attorney has made any authorised gifts, the OPG has a wide range of powers to investigate. If the person whose money was gifted dies, the value of the gifts will still be treated by the Revenue as being within the estate for inheritance tax purposes.

If would like any further information about the scope of your powers to make gifts when acting as an attorney, please do not hesitate to contact me at [email protected].

Partner (Member)
Practice Areas
Commercial Dispute Resolution
Finance Litigation
Property Litigation
Solicitor
Practice Areas
Agriculture and Rural Property
Commercial Property
Licensed Conveyancer
Practice Areas
Licensed Conveyancer
Practice Areas
Chartered Legal Executive, Associate
Practice Areas
Associate Licensed Conveyancer
Practice Areas
Licensed Conveyancer
Practice Areas
Chartered Legal Executive
Practice Areas
Chartered Legal Executive
Practice Areas
Upcoming Events

Supply Chain Supper Club – February 2020

05/02/2020

This event is invite only. If you would like to receive an invite, please…

Read More
News Posts

Gotelee welcomes Sian Walker…

14/10/2021

We are delighted to welcome Sian Walker as a trainee solicitor within Gotelee Solicitors…

Read More

Testimonials

"This is by far the go-to firm for any issues. You are made to feel valued from the outset and they are so confident in what they do. Wouldn't recommend any other. Thank you Hugh and Max."

- Ros Jones

"We found Rachel Dawson outstanding, polite, professional and caring."

-

"Jade Shelton was absolutely fantastic!! Professional and proactive at all times."

- JH

"Prompt, helpful, polite and very professional service"

-

"Approachable, very efficient, always willing to take my calls and update me."

- SH

"The ease that we could access and speak to Pat Smith - Thank you"

-

"“ This is the second time we have used Tracey for the conveyancing to buy our new home. She is always completely approachable, she has helped us along the way with advice and useful tips that has helped lessen the stress. We have complete confidence in her and would not hesitate to recommend her to our friends and family”.  - Peter Dawes, Cater Dawes Financial Planning "

-

"We were very pleased to have Jade as our solicitor, the service was excellent and we felt kept in the loop which minimised stress"

- CT

"I would like to say thank you for your help, support and guidance over the last two and a half years. Obviously should I need further assistance in the future I shall not hesitate to call you guys."

-

"I don't think this house sale would have pulled together without Jo's determination and expertise. Excellent!"

- MT

    Please select preferred method of contact

    * We will only contact you by telephone if you select this as primary form of contact. All web enquiries will be stored on our website for 30 days.