There are two types of Lasting Powers of Attorney (LPA); one to manage your property and financial affairs if you are unable to, and one to manage your health and welfare needs if you lose capacity.
All LPAs need to be registered with the Office of the Public Guardian (OPG). Historically, the OPG issued guidance for property LPAs that included investments managed by a bank. The following wording was recommended to allow the bank to accept the instructions included within the LPA: "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 the 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."
The OPG has recently updated its guidance to state there is no longer a specific requirement to include these instructions. However, some financial institutions have revealed that discretionary managed funds will come to an end unless there is an express instruction within the LPA. It is therefore best practice to include this wording within your LPA to ensure your finances continue to be managed in the way you intended.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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