A Property and Financial Lasting Power of Attorney or LPA, gives someone legal authority to manage your finances if you are no longer able to do so yourself. This could be due to illness, mental incapacity or simply being abroad. The appointed attorney is legally bound to act in your best interests at all times, following the rules outlined in your Power of Attorney document.
Managing Finances and Property on Your Behalf
A property and financial attorney can handle a broad range of financial matters. These include managing your bank and building society accounts, collecting benefits or pensions and paying bills. They may also deal with your savings, investments and tax matters. If needed, they can manage, sell or rent out your property, though restrictions can be set in your LPA.
The role is often essential when it comes to ensuring regular payments, budgeting and maintaining financial stability. This authority can be granted either before or after you lose mental capacity, depending on how the UK power of attorney is written and registered.
For those interested, you can find out more about UK Power of Attorney here.
Spending, Gifting and Legal Responsibilities
Your attorney may spend money on things that benefit you, including food, clothing, home repairs or care services. They can also make gifts on your behalf, but these must be in line with what you would reasonably be expected to do, such as birthday or Christmas gifts to family. If more substantial gifting or donations are considered, the attorney must apply to the Court of Protection for approval.
While they can give themselves reasonable reimbursements or gifts, attorneys are not allowed to borrow from your estate. They must maintain clear financial records and may be investigated if suspicions arise.
Attorneys cannot change your will, but they can apply to make a statutory one if you’re unable to do so. For more guidance, this government page outlines your attorney’s responsibilities.
Understanding your rights and limitations under a UK power of attorney ensures your affairs are managed with care, transparency and legal protection.
