Attorneys and inheritance tax planning
Guidance from Estate Advisory Group
Written and legally reviewed by Ramani Gill TEP, Solicitor and private client practitioner·Last reviewed 13 August 2026
Inheritance tax planning benefits the beneficiaries. Attorneys act for the donor. That tension is the whole subject.
The limits on gifts
- Gifts only on customary occasions — birthdays, weddings, religious festivals.
- Only to people the donor would normally give to, or to charities they supported.
- Reasonable in size given the estate, and affordable alongside care costs.
- Anything larger needs Court of Protection authority.
Detail in can an attorney make gifts.
What needs the court
| Plan | Route |
|---|---|
| Annual £3,000 gifting to use the exemption | Court application unless clearly customary and affordable |
| Gifting surplus income regularly | Court application |
| Transferring property to children | Court application |
| Creating a trust | Court application |
| Making or changing a will | Statutory will application |
What attorneys can legitimately do
- Continue gifts the donor had already established, if affordable and documented.
- Claim all available allowances and reliefs on the donor's tax return.
- Take professional advice and record it.
- Apply to the Court of Protection where the plan is substantial — the court does approve well-evidenced schemes.
Never gift first and ask later
Unauthorised gifting is the most common reason attorneys are removed and ordered to repay funds personally.
Common questions
Can I use the £3,000 annual exemption?
Not automatically. The tax exemption is not the same as authority under the LPA. Small customary gifts may be fine; systematic gifting needs court approval.
Can I make a will for the donor?
No. Only the Court of Protection can authorise a statutory will.
Read next
Where this fits
This page is part of Money, tax and property. The pages below take it further.
- Property & Financial Affairs LPA
The LP1F: money, bills, savings, property and everything a bank will ask for.
- Make an LPA online
The whole journey end to end: questions, documents, signing and registration.
Review and sources
Reviewed by Ramani Gill TEP, Solicitor and private client practitioner. Last reviewed 13 August 2026. We recheck fees, forms and Office of the Public Guardian guidance whenever they change — see our editorial policy.
Official sources
Ready to make your LPA?
Answer five quick questions to check the service suits you, then start online for £49 per LPA.
The Office of the Public Guardian charges a separate £92 to register each LPA.
This is general information about how Lasting Powers of Attorney work in England and Wales. It is not legal advice about your situation. What we do and do not do.
Published by Estate Advisory Group