Case Study – Lasting Powers of Attorney with Bespoke Safeguards

A 47-year-old client approached us to prepare both types of Lasting Power of Attorney (LPA):

• Property & Financial Affairs

• Health & Welfare

He owned property and investments, was in full-time employment, and was in a long-term relationship (though not married and with no children).

He wanted to ensure that, if he lost capacity, trusted individuals could step in to manage both his financial affairs and personal welfare. However, he was clear that he did not want a purely “standard” document. He wanted the LPAs to reflect his personal concerns and include appropriate safeguards.

Client's Key Objectives

Many people assume LPAs are simply prescribed forms that cannot be altered. In reality, while the framework is set by statute, there is scope to include:

• Specific instructions limiting how Attorneys may act

• Preferences guiding financial or healthcare decisions

• Safeguards designed to reflect personal priorities

• Structural choices about how Attorneys make decisions

The challenge is ensuring that any bespoke provisions remain legally valid, workable in practice, and acceptable to the Office of the Public Guardian (OPG).

In this case, the client had particular concerns about identity fraud and the misuse of financial documents. He was anxious about Attorneys being able to act without robust identity verification and initially proposed that they should only be permitted to act following in-person ID checks.

He also raised two additional requests reflecting his longer-term planning concerns.

First, he wanted it recorded that if he required residential or nursing care in the future, his Attorneys should ensure that he was placed in one of the best available care homes, regardless of cost, prioritising quality of care and comfort rather than minimising expenditure.

Secondly, he wanted to ensure his Attorneys would be able to actively manage and invest his funds, including the possibility of using professional investment management services to maximise income and long-term growth if he lost capacity.

These requests required careful advice.

We explained that:

• Banks and financial institutions operate under their own compliance and verification procedures.

• An LPA cannot override how third parties choose to carry out identity checks.

• Binding “Instructions” that are overly rigid or impractical risk rejection by the OPG.

• Poorly drafted conditions can make an LPA difficult, or impossible, to use when urgently required.

We worked through how the client’s objectives could be achieved without compromising the validity or usability of the LPAs.

The Solution

Both LPAs were drafted to remain fully operational while incorporating the client’s priorities.

Property & Financial Affairs LPA

We ensured that:

• Standard Attorney powers were preserved, allowing banks and financial institutions to accept the document without operational issues.

• No institution-specific identity requirements were inserted that might conflict with existing compliance procedures.

• The client’s identity verification expectations were recorded in the Preferences section, encouraging Attorneys to ensure robust ID checks without imposing binding restrictions that could invalidate the document.

• A Discretionary Investment Management clause was included, enabling Attorneys to appoint professional investment managers and operate investment portfolios if required. Without this wording, some financial institutions may refuse to open discretionary investment accounts where the LPA does not clearly authorise such arrangements.

Health & Welfare LPA

For the Health & Welfare LPA, we ensured:

• Attorneys had comprehensive authority to make future healthcare and care placement decisions if capacity was lost.

• The client’s wish to receive high-quality care and accommodation was included as a clearly expressed preference, guiding Attorneys to prioritise the best available care homes rather than focusing primarily on cost.

• Throughout the drafting process, we carefully distinguished between legally binding instructions and non-binding preferences, ensuring the LPAs remained practical and compliant with OPG requirements.

Managing Practical Boundaries

A central part of our advice was explaining that LPAs are flexible, but not unlimited.

They can include tailored provisions and safeguards, but those provisions must:

• Be legally clear

• Be capable of practical implementation

• Avoid conflict with third-party procedures

• Meet OPG registration standards

• Effective drafting involves balancing personal control with real-world functionality.

The Outcome

By the end of the process:

• Both LPAs were individually tailored, reflecting the client’s financial, security, and long-term care priorities rather than relying on default wording.

• The identity verification concern was addressed appropriately through guidance rather than restrictive conditions.

• The documents allow Attorneys to use professional investment management where appropriate, protecting the client’s financial interests.

• The client’s wish for high-quality care in later life was clearly recorded to guide future decision-making.

• The LPAs preserved full usability across financial institutions and healthcare providers.

• The risk of OPG rejection was minimised through careful drafting and correct use of instructions and preferences.

• Both LPAs were successfully registered, confirming that the bespoke provisions were legally sound and workable.

The client left with reassurance that his planning was not generic but carefully structured, reflecting both his personal priorities and the practical realities of how LPAs operate.