Investing as a Deputy or an Attorney

How Kingsley Napley and Stellar Asset Management can assist you in your role as an Attorney or Deputy.

When a person loses mental capacity to manage their financial affairs, whether through accident or illness, family members or professionals are required to step in and deal with their finances on their behalf.
 

They are supervised by the Office of the Public Guardian (OPG) as either Attorneys appointed by the person themselves through a Lasting Power of Attorney or Enduring Power of Attorney or a Deputy for Property and Financial Affairs, appointed by the Court of Protection. The OPG advised that there are 4.7 million registered power of attorneys and 60,000 Court of Protection appointed Deputies. The Office of the Public Guardian has published guidance and standards which must be complied with when managing the financial affairs of another person. One of the obligations imposed on an attorney or deputy is to act in their best interests. Where
that person is in possession of significant sums of money their Attorney or Deputy must take appropriate steps to manage those funds, including consideration of investments and tax mitigation. 

On this page, you can find out more about how Kingsley Napley and Stellar Asset Management can assist you in your role as an Attorney or Deputy. If you have any questions, or would like to know more about how we can support you, please feel free to get in touch.

Considerations when investing as a Deputy or an Attorney

Who can invest?

Attorneys appointed under a Lasting Power of
Attorney (LPA) for property and affairs; and
Deputies appointed by the Court of Protection to
manage the property and affairs of someone who
lacks mental capacity to make decision.

 

What must they be aware of?

  • The attorney/deputy cannot do whatever they like with the person’s money;
  • They must support the person to make decisions themselves where possible;
  • Any investment decision must be made on what is now in the person’s best interests, whilst balancing their wishes; and
  • Decisions should be based on the person’s preferences and beliefs.

 

When should a financial advisor be appointed?

  • When the attorney/deputy does not feel they have the relevant experience/knowledge;
  • It is necessary to show that advice has been taken (this may be a requirement of the Court of Protection or Office of the Public Guardian);
  • Diversification or review of investments is required; and 
  • Specialist advice is required.

 

What should the attorney / deputy ensure?

  • That the person has been involved in the decision as far as possible;
  • That the advisor is aware that the attorney / deputy is acting on behalf of another;
  • The risk is assessed with the advisor based on the person’s  circumstances;
  • The cost of the advice is an appropriate use of the funds;
  • They fully understand the products that have been recommended;
  • The current and future circumstances of the person have been taken into account;
  • Decisions must not be delegated to an investment fund manager without permission within the LPA or Court Order;
  • They must not benefit from their position;
  • Decisions are made based on the person’s best interests, not the attorneys/deputies own.

 

Other Considerations

Tax – it is necessary to consider the tax implications of making investments. If this includes the making of gifts then permission may be required from the Court of Protection.

Care – consider the implications of making investments on future care fees, some authorities will still charge a person for their care if they consider that decisions have been made in order to avoid making contributions towards care fees. 

Wills and beneficiaries – an attorney / deputy should consider the contents of a will, however, the priority must be the current and future circumstances of the person.

Keeping records – it is important to keep account of all transactions carried out on behalf of another, as the Office of the Public Guardian may ask you to send financial reports. 

Fraud – abuse of a position is a criminal offence. This applies to anyone looking after another person’s finances.

 

About the Service

Attorney Service

Kingsley Napley will:

  • provide a review service for the Attorney to understand
  • the requirements of the individual;
  • advise on Office of the Public Guardian obligations and
  • assist with any necessary Court applications for authority to
  • act as appropriate, this may include confirming appropriate
  • investment powers in place;
  • introduce Attorney to Stellar to consider investment
  • instruction by requesting investment proposal, directly
  • or via a financial adviser;
  • If selected, Stellar will:
  • provide ongoing Investment management services,
  • including tax planning; and
  • formally report to the Attorney on a quarterly basis.

Deputy Service - Professional

Kingsley Napley will:

  • act as Professional Deputy, Order of authority includes
  • permission to an investment fund manager on a
  • discretionary basis;
  • consider requesting investment proposal from Stellar
  • or via financial adviser

If selected, Stellar will:

  • provides on-going Investment management services,
  • including tax planning; and
  • formally report to the Deputy on a quarterly basis.

Deputy Service - Lay

Kingsley Napley will:

  • provide a review service for the Deputy to
  • understand the requirements of the individual;
  • advise on Court of Protection obligations and assist
  • with any necessary Court applications for authority
  • to act as appropriate;
  • introduce Deputy to Stellar to consider investment
  • instruction, directly or via a financial adviser;
  • If selected, Stellar will:
  • provide on-going Investment management
  • services, including tax planning; and
  • formally report to the Deputy on a quarterly basis.

Trusts

  • Kingsley Napley assists clients in setting up Personal Injury Trusts following receipt of compensation award in order to ring-fence funds from benefits and care funding means tests.
  • Kingsley Napley may also act as Professional Trustees for such clients.
  • Kingsley Napley assists clients in setting up Personal Injury Trusts following receipt of compensation award in order to ring-fence funds from benefits and care funding means tests.
  • Kingsley Napley may also act as Professional Trustees for such clients.
  • If acting as a Professional Trustee, Kingsley Napley may request an investment proposal from Stellar.
  • Lay Trustees may also seek advice from Kingsley Napley in order to comply with their duties as Trustees.
  • Kingsley Napley may introduce Stellar to Trustees so that they can consider their proposals, including tax planning advice.
  • If instructed, Stellar formally report to the Trustee on a quarterly basis.

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