Lasting Powers of Attorney – Power to Delegate.
9th August 2016 by Kate Mansfield
An attorney (the person making decisions for you) under a Lasting Power of Attorney for Property and Financial Affairs cannot delegate their authority to someone else unless the Power specifically authorises them to do so.
They can take professional advice, for example, from a financial advisor, but their power does not extend to employing the financial advisor to actively manage the investments unless they have been given the power to do so.
This is the case even if the donor of the power has already got assets under management when the Lasting Power of Attorney starts being used. One of the major banks has a policy that attorneys need to enter into a new agreement for discretionary management when they start acting. If there is no power to delegate this would not be possible and the attorney would need to manage the investments themselves, taking advice from time to time.
It is therefore sensible to include in the instructions section of the Lasting Power of Attorney the following;
‘My Attorneys may transfer my investments into a discretionary management scheme or, if I already had investments in a discretionary management scheme before I lost capacity to make financial decisions, I want that scheme to continue. I understand in both cases that managers of the scheme will make investment decisions and my investments will be held in their names, or the names of their nominees.’
If you would like any further information on this topic, or other matters relating to Powers of Attorney, please contact Kate Mansfield on 01202 755980 or email k.mansfield@laceyssolicitors.co.uk.
Kate Mansfield
Partner — Private Client
Direct dial: 01202 377853
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“We have had the pleasure of Kate’s sensitive and unwavering professional support for a number of years. She has always been able to combine her deep expertise, with practical context and a tone of voice that gently escorts you through, often difficult decisions. We could not recommend Kate highly enough, both professionally and personally.”
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“Kate was extremely knowledgeable, straightforward to deal with as well as sympathetic during what was a difficult time. I felt in good hands!”
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“Kate took the trouble to understand the particularities affecting my Will and found sensible ways of dealing with them.”
Kate is a Partner in our Private Client Team and has 25 years’ experience in private client work, specialising in wills, tax planning and estate administration. Kate has worked in this area since she qualified and has assisted thousands of families and individuals.
Kate qualified as a solicitor in 1995 after obtaining a 2.1 in Law from the University of Kent. She completed her training contract with Laceys and became a partner in 2002.
Kate is a full member of the Society of Estate and Trust Practitioners (STEP) and sat on the STEP committee for 6 years. She has also taught on the Legal Executives course at Bournemouth & Poole College.
Kate enjoys the personal side of the work and the satisfaction of assisting the bereaved and families with complex affairs, whether it be complex financial aspects or those where a diplomatic hand is required. She prides herself on being able to explain the legal position in plain English.
Out of the office she enjoys keeping fit. She enjoys going to the gym and getting out into the Dorset countryside on her road bike. Cooking, particularly baking, is also a passion.
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