Richard Higgs, Chartered Independent Financial Planner
The power to make gifts as an Attorney is a common question. It could be as simple as “Grandma has always given her grandchildren £100 each on their birthday. Can we keep doing that?” or it may involve more significant amounts, like paying school fees.
Guidance on this topic can be found on the ‘gifting gifts’ page on the GOV.UK website. One key point is that Attorneys must prioritise the Donor’s ability to cover care costs. Even if Grandma has a history of giving gifts, the Attorney might need to say, “I’m really sorry, but we have to put Grandma’s care fees first”. Legally, the Donor’s needs come first.
For larger gifts, Attorneys often need approval from the Court of Protection. This step helps protect the Attorney from legal issues whilst also protecting the Donor from potential financial abuse. Generally, Attorneys cannot give away the Donor’s property without express court approval, but there are exceptions:
Generally, gifts of the Donor’s property are NOT permitted by Attorneys without express authority from the Court of Protection. However, there are exceptions:
Attorneys can make the following gifts:
To a family member, friend or acquaintance on a customary
event (like a birthday, or wedding for example)
A charity
Attorneys cannot use gifts to reduce the Donor’s assets to avoid paying care costs. It’s a complex area without a one-size-fits-all solution. Each decision must be based on the specific circumstances, ensuring it serves the Donor’s best interests.
Attorneys are legally accountable for all decisions and transactions they make, whether about gifting, managing investments, or funding care fees.
To book a complimentary pension review, call 0117 3636 212 or email office@haroldstephens.co.uk.
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