Tag Archives: The Wealth Lawyer UK

ILN Today Post

Gifting millions under Lasting Power of Attorney: the JMA case

One of the less talked about implications of losing capacity in old age is that Inheritance Tax (IHT) planning often becomes impossible without court intervention.  Incapable wealthy family members cannot make gifts because they lack the capacity to authorise them.  Even if they have had the foresight to sign a Property & Financial Affairs Lasting Power of Attorney, by law an attorney’s ability to make gifts is extremely limited and this cannot be overridden by any terms placed in the Lasting Power.  If the member lacks capacity and there is going to be a big IHT bill to pay on their death, the only option is to make an application to the Court of Protection for authority to make a substantial gift.

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