My mother set up a LPA for ease of handling financial affaris when she was “well”. She also started making gifts out of her income prior to LPA. After completing an Option 1 (immediate as well as incapacitated) LPA she set up other gift streams (with signed statements explaining her decisions). Several years after she was diagnosed with a condition that theoretically (although not yet practically) impacted her mental capacity. The date of diagnosis is recorded?
Does this sequence of timing cause any potential downstream issue for the gift recipients (multiple) in respect of future IHT liability?
I suggest formal advice should be obtained as to whether the various arrangements she has put in place will survive her loss of capacity. If they do, is there anything she could do to change that, should she have sufficient capacity at this time to var the arrangements?
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
Interesting question - thanks Paul. Isn’t that what the attorney is for? I expect that a request to court of protection disclosing information, together with the overall financial status of the donor would be required. It would be unusual for the court to rule against personal wishes, but this evidence probably needed to ensure that “best interest” is followed?