Adding preferences to LPAs

Trusts Discussion
1

Good evening

Since the introduction of the digital “use an LPA” service what are your thoughts please on adding in preferences?

I would always include the preference to allow the third party discretionary management of investments as standard but I’m now wondering whether it is right to include it. If an LPA contains any preferences or instructions at all then the highly useful and time-saving "use an LPA’ service cannot be used and hard copies of the LPAs have to be given to banks, as they used to be pre 2020.

What is best practice? Presumably giving the clients the pros and cons of adding preferences and letting them come to a fully informed decision? But if clients were to ask me what I would do in their position, I’m not really sure how I would respond. How would you?

Looking forward to your feedback.

Many thanks
Deborah

1 Like
2

On DIM, the OPG were reviewing whether to remove the need for that instruction and I understand that they have but possibly have not issued the formal guidance yet, but if I’m wrong there and they have then that at least solves that problem re the digital service.

Andrew.

3

Thank you Andrew

So now we can stay quiet on DIM- that authority is covered by the LPA generally so it would therefore be best practice not to include any preferences?

4

Not my ‘day to day’ activity but I did note these items a few weeks ago.

https://blog.step.org/2022/03/17/lpas-no-longer-require-discretionary-investment-express-provision/

https://communities.lawsociety.org.uk/private-client-news/investment-by-attorneys-in-discretionary-management-schemes-clarified-by-opg/6002225.article