Changes to discretionary managed funds
19 December 2022
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. If you would like to review your LPA or put in place an LPA, please do get in touch with our Private Client Advisory Team who would be happy to assist
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at December 2022.