When a parent starts to find it difficult to manage their finances - due to age, illness, or cognitive decline - families are often unsure of what steps to take. It can be a sensitive and emotional time, but ensuring the right legal protections are in place is extremely important.
At Coles Miller Solicitors, our Private Client team helps families across Dorset and further afield to plan ahead and manage their loved ones' affairs with compassion, clarity, and expertise. One of the most effective tools to help in these situations is a Lasting Power of Attorney (LPA) for Property and Financial Affairs.
What is an LPA for property and financial affairs?
A Lasting Power of Attorney (LPA) is a legal document that allows a person (known as the donor) to appoint one or more people (attorneys) to manage their affairs if they become unable to do so themselves later in life.
An LPA for Property and Financial Affairs specifically allows attorneys to:
- Manage bank accounts and investments
- Pay bills and household expenses
- Collect pensions or benefits
- Sell or rent property if needed
- Handle tax matters and liaise with HMRC
The donor must have mental capacity at the time the LPA is created, so early planning is crucial.
When does it come into effect?
Unlike a Health & Welfare LPA, which can only be used once a person loses mental capacity, a Property and Financial Affairs LPA can be used as soon as it's registered with the Office of the Public Guardian (with the donor’s consent).
This can be especially helpful if a parent is physically frail or struggling with admin - even if they are still mentally capable.
Common scenarios we help with
At Coles Miller, we regularly support clients with:
- Selling a parent’s home to help fund care or downsize
- Accessing bank accounts to ensure bills continue to be paid
- Managing rental properties or investments that the parent can no longer oversee
- Supporting with complex financial administration during long-term illness or hospital stays.
How Coles Miller Solicitors can help
We understand that stepping in to help manage a parent’s finances can feel overwhelming - legally, emotionally, and practically. That’s where our team comes in.
Expert guidance every step of the way
Our Private Client team of solicitors will:
- Draft and register the LPA with precision
- Explain your duties and responsibilities as an attorney
- Help resolve any family concerns or disputes
- Guide you through managing accounts, property, or selling assets
- Offer ongoing legal support as your parent’s needs evolve.
There are also potential pitfalls for the person looking after someone else’s finances which can have legal consequences for the attorney. Legal advice should always be sought if an attorney is considering buying an asset or investment that could have direct or indirect benefit for the attorney or his or her family. There are clear rules for attorneys limiting their powers and this advice should be sought before there is any risk of any conflict of interests.
We also advise on Court of Protection applications if a parent no longer has the capacity to make an LPA - though ideally, we help families avoid this costly and lengthy process through forward planning.
Why act early?
Many people wait too long to create an LPA, assuming they’ll have time later. Unfortunately, once a person loses mental capacity, it’s too late to make one - and managing finances becomes significantly more complicated.
Early action ensures:
- Your parent remains in control of choosing who will manage their affairs
- Legal and financial decisions can be handled smoothly and without delays
- You avoid the emotional and financial burden of applying for Deputyship through the Court of Protection.
Speak to us today
If you’re considering setting up an LPA for a parent - or already need to act as an attorney - our experts at Coles Miller are here to help. We offer clear advice, practical support, and peace of mind during what can be a very challenging time.
Contact our Private Client department today for a confidential consultation and to find out how we can help you support your loved one while protecting their assets and interests.
For expert legal advice, contact Coles Miller Partner Anthony Weber, Head of the Wills and Probate Department. He has three decades of legal experience, specialising in wills, probate, living wills, administration of estates, powers of attorney and dealing with the Court of Protection and the Office of the Public Guardian.
Tony is a member of the Law Society’s Private Client Section (formerly the Probate Section).
Tony is also on the steering group of Broadstone Stepping Stones, a Dementia Friends group and a Trustee of the Growing Compassionate Communities charity which is principally focused on supporting vulnerable adults and their carers. He is based at Coles Miller’s Fleetsbridge office.
