Standing order and attorney

A person has set up a standing order to make regular gifts (for IHT planning), and they then lose mental capacity. Would that person’s attorneys fall foul of the restriction on making gifts if they do not stop the standing order?

Orlando Bridgeman
Crombie Wilkinson Solicitors

I don’t know if the bank would treat the standing order as revoked by the supervening incapacity, but subject to that I think it is a valid continuing authority. The question for the attorney is whether to revoke it, and that has to be decided by reference to the best interests of the donor. I don‘t think that best interests is confined to the supply of necessaries and if the donor wanted to set it up I think it should be allowed to continue if he can afford it. See sec 4(6) of the MCA

That said, I think there is something to be said on the other side and if the sums involved justify it, it may be a case to refer to the court.

Tim Gibbons