Investments and pensions as an attorney
Guidance from Estate Advisory Group
You can manage the donor's money, but delegating it to a fund manager needs express permission in the LPA.
The discretionary management trap
Add the wording when you make the LPA
An attorney cannot delegate investment decisions to a discretionary fund manager unless the LPA says so. If the donor already uses one, the LPA should include an instruction permitting it — retrofitting this later needs the Court of Protection. See preferences and instructions.
What you can do without special wording
- Operate accounts, move money between the donor's own accounts and pay bills.
- Take advice and make investment decisions yourself, prudently and for the donor's benefit.
- Subscribe to a cash ISA, and manage existing holdings.
- Claim a pension the donor is entitled to and arrange income payments.
Pensions need care
Providers vary widely in what they accept. Drawdown decisions, transfers and annuity purchases are significant and should be taken with regulated financial advice and a written note of your reasoning. Anything that looks like estate planning rather than the donor's benefit is off limits.
Common questions
Can I open a stocks and shares ISA for the donor?
Most providers refuse an attorney-opened stocks and shares ISA. Cash ISAs are usually accepted.
Can I take money from the donor's pension to fund gifts?
No. See can an attorney make gifts.
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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