How Should A Donor’s Property & Financial Affairs Be Managed Under A LPA

Care Fee Protection Trusts

When you are appointed as an Attorney to manage the Donor’s property and financial affairs it can be a daunting prospect to manage their affairs as well as your own. It is also a huge responsibility, and it is important that as an attorney, you ensure you manage the Donor’s affairs in the correct way. Otherwise, you may be subject to an investigation by the Office of the Public Guardian.

Managing the property and financial affairs of a Donor under a Lasting Power of Attorney (LPA)

Once the LPA has been registered, it is important that an Attorney manages the property and financial affairs of the Donor in the following ways:

  • When registering your authority to act for the Donor, you should ensure that the Donor’s finances and possessions are kept separate from your own. This is so that there is a clear separation between the Donor’s funds and your own, which helps to minimise any risk of mismanaging the Protected Party’s affairs.
  • You should also ensure you keep accurate accounts showing what you have done. This applies, especially where you have claimed expenses for acting as an attorney. An attorney can claim expenses for things you must do to carry out your role as an attorney for example travel costs, but it is important that these are documented properly.
  • You must keep receipts of everything purchased on behalf of the Donor.
  • You can make gifts on behalf of the donor however, there are strict limits on the gifts you can give as an attorney. If you make any large gifts of money or property, you must apply to the Court of Protection for permission. Any gifts you do decide to give should be recorded carefully and you should be prepared to explain any that might seem too expensive.
  • You should ensure that the Protected Party’s tax affairs are kept in order and if necessary, instruct an accountant to prepare the Protected Party’s tax returns if this is needed.
  • You should confirm that the Protected Party is claiming and using their allowances, benefits, and pensions.

Comment

If you do not manage the Protected Party’s affairs effectively, the Office of the Public Guardian may investigate you which could result in a number of consequences should you be found to have acted inappropriately. Our next blog considers investigations by the OPG and the possible outcomes.

How can we help?LPA Managing Donors Finances

Tanya Kirman is a Paralegal in our expert Court of Protection team. Tanya specialises in all aspects of Court of Protection work, including management of property and financial affairs under the authority of deputy and attorney appointments.

For further information concerning the topics discussed in this article or any related matters, please contact Tanya or another member of our team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online enquiry form.

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