Investment catch out in lasting Power of Attorneys and how to protect your money.

August 28, 2018

 

“I Believe in Rags to Riches, Your Inheritance won’t last”

 

Ok so perhaps Aerosmith don’t know everything, but here’s a thing, without the protection afforded by a Lasting Power of Attorney (LPA) any Inheritance accrued through investment may well not last very long at all and may not be possible to continue to grow.  It is wrongly assumed by many, including some financial advisers, that an LPA enables a designated trusted person to act on behalf of the document owner for the health & welfare and on matters of property & wealth.  But that does not include the inclusion outright of continued investment within a discretionary fund management (DFM) scheme. 

 

FT Advisor reported some time ago* about the LPA guidelines which are catching some Financial Advisers and their clients out.  Many advisers experience compliance issues once an LPA comes in to force.

 

Imagine you have, through the advice of your IFA, successfully invested and developed funds and/or has property investments with the expressed objective of benefiting your immediate family and future descendants.  You have, with your IFA’s advice, thoroughly thought through your financial situation and put an LPA and Will in place.  You are now confident you have taken the necessary measures to remain financially secure and protect your family should you lose capacity.

 

Once an LPA comes into force and the named trusted Attorney takes over the problems, from an investment perspective, can begin.  Many LPA’s written overlook the guidance of the Office of the Public Guardian, that recommends ‘express instructions’ are within the LPA on the investment or continued investment within a DFM.  It is the outsourcing of the investment, i.e through your own financial adviser where the problem arises.

 

It is the lack of ‘express instruction’ that impacts the ability to continue the investment process.  Many clients are unaware that an Attorney would be required to apply to the Court of Protection for retrospective consent.  Impacting not only on your adviser’s capacity to manage the investment, but the Attorney’s ability to act efficiently on behalf of you, the document owner.

 

One easy solution is to ensure your LPA and Will are written by a service that intrinsically understands your investment portfolio and the financial advise landscape.  That is where Langham Wills Ltd can help.  Drawn from an IFA background and with over 20 years of Will Writing and LPA experience, our team can provide the essential documents with an inbuilt understanding of your financial objectives and continued development.

 

If you are keen to create greater security for your family’s financial future and desire a Will or LPA fit for purpose contact Langham Wills by email at theteam@langham-associates.co.uk, via our website www.langham-associates.co.uk or call us on 01473 487611


*https://www.ftadviser.com/regulation/2016/12/14/power-of-attorney-guidelines-catch-out-advisers

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Langham Associates Ltd Independent Financial Planners is authorised and regulated by the Financial Conduct Authority. FCA Number 587218 https://register.fca.org.uk/

The Financial Conduct Authority does not regulate will writing and taxation and trust advice

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