When does an LPA attorney have to apply to the Court of Protection?

Written By Maneshveri Pather

There are circumstances in which an attorney under a Property and Financial Affairs LPA must apply to the Court of Protection for permission to carry out a proposed transaction. These transactions include :

  • An attorney or person known to the donor purchasing the donor’s property

  • An attorney proposing to sell the donor’s property below market value

  • An attorney proposing to make a large gift from the donor’s funds, including decisions related to reducing inheritance tax

The reason for requiring permission from the Court of Protection is because these transactions can represent a conflict of interest because an attorney is appointed to act on the donor’s behalf. The Court of Protection exists to protect the vulnerable, thus permission has to be obtained from the Court for the above - mentioned decisions, and a mental capacity assessment is required, which has to be completed on a COP3 form.

Maneshveri Pather
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