When and how to recommend Lasting Powers of Attorney (LPAs)
Why LPAs matter to banks
Banks are frequently the first organisations to encounter problems when a customer’s capacity declines. There is severe reputational damage and stress for staff if a client has to be turned away due to their or their partners POTENTIAL lack of capacity. So why not gently nip it in the bud by recommending LPAs?
Without a registered Property & Financial Affairs LPA:
- staff cannot accept instructions from family members
- accounts – even joint account – may be frozen or restricted
- complaints, escalation, and safeguarding concerns increase
- the Court of Protection may become unavoidable
LPAs provide the legal authority banks require to deal with third parties.
What banks are required to recognise
Banks do not assess capacity and do not create LPAs.
They are required to recognise a registered LPA as proof of authority.
Typically banks will require:
- a registered Property & Financial Affairs LPA (paper or OPG access code)
- identity verification of the attorney
- internal registration of the LPA on the account (often several days)
Delays and conflict usually arise because the LPA does not exist, not because the bank is being obstructive.
When bank staff should raise LPAs – and How
It is appropriate to mention LPAs where:
- a customer appears to rely heavily on family or third parties
- staff are asked to “just take instructions” from relatives
- repeated concerns arise about vulnerability or confusion
- customers ask what happens “if I can’t manage things later”
- accounts are becoming difficult to operate safely
- Other signs: deterioration in appearance, issues with getting words out, substantial swings in behaviour, mood changes, erratic behaviour, paranoia (sometimes justified!)
Raising LPAs early can prevent future restrictions, complaints, and escalation.
Bank staff should not give legal advice — but they can signpost.
Suggested wording:
“At the moment, we can only take instructions directly from you.
If there ever came a time when you couldn’t manage things yourself, the bank would need a registered Lasting Power of Attorney before we could deal with anyone else on your behalf.This also applies if either party on a joint account may have lost the ability to make decisions.
You may wish to consider setting one up while you’re able to choose who can act for you, rather than the Court of Protection.”
If family members are present:
“We’re unable to take instructions from family members without legal authority.
A Property & Financial Affairs LPA is the usual way customers arrange this in advance.”
PDF LPA explanation Referral form
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