New OPG Guidance for Business Highlights the Importance of Lasting Powers of Attorney – and Choosing the Right Attorney
Hundreds of thousands of small and not so small businesses risk collapse without the right LPA and related planning.
Risking
- No Payroll – so no wages – NO STAFF
- Unpaid Creditors – NO RAW MATERIALS
- No Tax or NI paid – HEAVY PENALTIES
The Office of the Public Guardian (OPG), working alongside regulators including the Financial Conduct Authority, Ofcom and Ofwat, has recently published updated guidance to help businesses deal with customers who may no longer be able to make their own decisions.
The guidance appears to be aimed at banks, utility companies and other organisations. It explains how staff should recognise and deal with Lasting Powers of Attorney (LPAs), Enduring Powers of Attorney (EPAs), Deputyship Orders and similar legal arrangements. There is always a danger that uninformed staff will facilitate criminal activity, so some understand it needed.
However, there is a wider message that every family should understand.
An LPA Is About More Than Authority
Most discussions about LPAs focus on the practical side.
Who can speak to the bank?
Who can deal with investments?
Who can sell a property if needed?
These are important questions, but the OPG guidance reminds us that an attorney’s role goes much further than simply having authority.
An attorney has a legal duty to act in the donor’s best interests.
They must use the donor’s money and assets for the donor’s benefit, not their own.
That duty is taken seriously.
Financial Abuse Does Happen
Most attorneys act honestly and responsibly. They are often spouses, children or other close family members doing their best in difficult circumstances.
Unfortunately, problems do sometimes arise.
The OPG guidance encourages organisations to be alert to signs that an attorney or deputy may not be acting properly.
Examples might include:
- Large or unusual gifts being made to family members.
- Significant transfers of money with no obvious benefit to the donor.
- Unexplained withdrawals from accounts.
- Essential bills being neglected.
- Spending patterns that are completely out of character.
- Purchases that appear to benefit the attorney more than the donor.
For example, questions may arise if a person with advanced dementia is paying for luxury holidays they are unable to enjoy, buying expensive items they no longer use, or making substantial gifts that reduce their own financial security.
In such cases, organisations are encouraged to report concerns to the Office of the Public Guardian.
Choosing an Attorney Is One of the Most Important Decisions You Will Make
When people make LPAs, they often focus on who is available rather than who is suitable.
Being someone’s attorney is not a reward, an honour or a family entitlement.
It is a position of trust.
The right attorney should be:
- Honest and trustworthy.
- Financially responsible.
- Organised and reliable.
- Willing to act in your best interests.
- Capable of making difficult decisions when necessary.
The wrong choice can create problems not only for the donor but also for other family members.
Businesses Have a Role to Play
The updated guidance also reminds businesses that they have safeguarding responsibilities.
Staff should understand how LPAs and Deputyship Orders work, recognise legitimate authority and know when something does not look right.
A properly trained member of staff may be the first person to notice unusual spending, unpaid bills or behaviour that suggests financial abuse.
Early intervention can protect vulnerable people from significant financial loss.
The Real Lesson
The OPG’s guidance is primarily aimed at organisations, but it contains an important message for everyone.
Making a Lasting Power of Attorney is not simply about ensuring someone can deal with your affairs if you lose capacity.
It is about choosing someone you trust completely to protect your interests when you may no longer be able to protect them yourself.
That decision deserves careful thought.
After all, an attorney may one day have control over your home, your savings, your investments and many of the decisions that affect your quality of life.
Choose wisely.
If you would like advice about Lasting Powers of Attorney, or would like to review existing arrangements, contact Stephen Pett at The Professional Will Writer on 01323 766766.