Lasting Powers of Attorney for eigendom and financial affairs give attorneys wide powers to manage the donor’s assets. However, as Katharine Whittingham explains, the recent case of Chandler v Lombardi confirms that these powers do not necessarily extend to making gifts.
Datum: 28 januari 2022
Een permanente volmacht voor vermogens- en financiële zaken verleent gevolmachtigden ruime bevoegdheden om het vermogen van de volmachtgever te beheren. Zoals Katharine Whittingham echter uitlegt, bevestigt de recente zaak Chandler tegen Lombardi dat deze bevoegdheden zich niet noodzakelijkerwijs uitstrekken tot het doen van schenkingen.
Chandler v Lombardi concerns a donor who had made a zal in 1993 leaving her home equally between her four children. One daughter was later appointed as her attorney for both her Property and Financial Affairs and Health and Welfare.
De schenkster had in 2016 tweemaal een ontmoeting gehad met de advocaten, waarbij zij haar voornemens met betrekking tot het onroerend goed kenbaar maakte, hoewel de dochter beide keren aanwezig was.
On the first occasion, the donor told the solicitor that she wished to transfer half the property to the daughter. The solicitor had concerns about accepting these instructions and ultimately declined to act.
The following month, she met with a solicitor at a different firm with a view to updating her will. An attendance note from the meeting recorded that she wished for her daughter to receive the property on her death. However, no changes were in fact made to her will, despite her GP having confirmed that he considered she had the capacity to make a new will.
After registration of the power of attorney, the daughter consulted a solicitor in relation to the ownership of the property, stating that the donor had wished it to be transferred to her in return for her care and support. In June 2018 she signed a transfer of the property into the joint names of herself and her mother using the power of attorney. By this time, the donor would not have had the capacity to make the gift herself.
De zoon van de schenker betwistte de geldigheid van de overdracht. De schenker overleed nog voordat de zitting bij het Hooggerechtshof plaatsvond, waarbij de rechter oordeelde dat de gevolmachtigde noch de bevoegdheid, noch het recht had om een aandeel in het onroerend goed te schenken. De overdracht werd nietig verklaard en het onroerend goed keerde terug naar de nalatenschap van de schenker.
The judge pointed out that attorneys have very limited powers to make gifts on behalf of donors under Lasting Powers of Attorney. The Mental Capacity Act 2005 permits attorneys to make gifts to relatives and other people connected to the donor only on customary occasions such as on birthdays and marriages and only where these are reasonable in value in relation to the size of the donor’s estate. The court did not consider that a transfer of half the property fulfilled these conditions.
Als de schenker de wens en de mogelijkheid heeft om een schenking te doen, staat niets hem of haar in de weg om dit persoonlijk te doen, zelfs als een advocaat al het beheer over zijn of haar vermogen en financiële zaken heeft.
Where the donor lacks capacity and an attorney considers it would be in their best interests to make a gift falling outside the parameters of the authority given under the Mental Capacity Act 2005, the attorney can make an application to the Court of Protection for an order giving authority for the gift to be made. The daughter claimed that she was not aware of the need to make a court application and had not been advised on this by the solicitor dealing with the transfer. This was not held to be a reasonable excuse.
Bij het ondertekenen van een blijvende volmacht verklaart de gevolmachtigde dat hij of zij zich bewust is van de plicht om te handelen volgens de beginselen van de MCA 2005 en de praktijkcode van de Mental Capacity Act. Het is dan ook zijn of haar verantwoordelijkheid om ervoor te zorgen dat hij of zij begrijpt wat dit inhoudt.
If an attorney does make a gift on behalf of a donor on the basis of the powers set out in the Mental Capacity Act 2005, it is important to keep clear records of the date, recipient and value. This information may need to be provided to the Office of the Public Guardian in the event of a later challenge to the validity of a gift.
If you are looking for advice in relation to gifting or wish to make Lasting Powers of Attorney for either Property and Financial Affairs or Health and Welfare or an application to the Court of Protection, our Particuliere klant department would be more than happy to assist you. Our team can be contacted at PrivateClient@rfblegal.co.uk
