Can an attorney make gifts?
Guidance from Estate Advisory Group
Only within tight limits. Gifts are the single most common reason attorneys get investigated.
What the law allows
An attorney may make gifts only on customary occasions — birthdays, weddings, Christmas, anniversaries — to people connected to the donor, or to charities the donor already gave to. The amount must be reasonable given the size of the estate and must not affect the donor's ability to pay for their own care.
What is not a gift you can make
Inheritance tax planning is not an attorney's decision
Transferring the house, making large gifts to reduce a future tax bill, writing off a loan or paying family members for care all need an order from the Court of Protection first — even where the whole family agrees and even where it is obviously sensible.
Interest-free grey areas
- Paying yourself expenses is not a gift, but it must be genuine and evidenced.
- Continuing regular payments the donor already made can be reasonable; starting new ones usually is not.
- School fees for grandchildren are a gift, not maintenance, unless the donor was already paying them.
- Selling the donor's car to a relative below market value is a gift of the difference.
Common questions
How much is reasonable?
There is no set figure. A £50 birthday gift from a £400,000 estate is plainly fine; £5,000 to one child is not, however affordable it looks.
What happens if I have already made larger gifts?
Take advice quickly. The Court can retrospectively approve gifts, but the OPG can also require repayment and removal.
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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