A lasting power of attorney is a legal document that enables you to appoint a trusted individual to manage your affairs in accordance with your wishes should you lose mental capacity. Gifting is an area that an LPA will cover, and here is a straightforward guide to gifting rules.
What is gifting in the context of an LPA?
If an attorney were to give away property or money belonging to the donor, this is classed as gifting. There are many different forms of gifting, including making charitable donations and birthday gifts.
When looking for an LPA online from a provider such as //powerofattorneyonline.co.uk/, always ensure every question has been answered fully before making a decision.
What are the rules of gifting in the context of an LPA?
There are clear rules surrounding gifting to ensure the finances of the donor are properly protected.
An attorney is permitted to give gifts on customary occasions, including weddings and birthdays; however, the size and value of these gifts must be aligned with the gifts the donor would have given themselves if they had the capacity to do so.
An attorney may also make charitable donations. These should always be aligned with the known wishes of the donor or in accordance with their past charitable practices.
Are larger gifts permitted under an LPA?
An attorney may apply to the Court of Protection to seek approval for gifts that are not in line with the above guidelines.
There are fees to pay should you take this route, and it can take months to receive a decision.