Can an LPA Attorney Give Money to Family? Gifts and Legal Limits
An attorney under a property and financial affairs Lasting Power of Attorney can make some gifts, but the authority is limited. Access to an account does not mean the attorney can divide the balance between family members, advance an inheritance or give away whatever seems fair.
The starting point is the donor: the person who made the LPA. Their money remains theirs. This guide explains the England and Wales framework and the questions to check before a proposed family gift. It is general information, not permission to make a particular transfer.
Check whose decision it is
First consider whether the donor can make the particular gift decision themselves, with appropriate support. OPG says a donor who has capacity to make a gift should normally make it themselves. An attorney's statutory gift-making limits do not disappear because the donor appears to have capacity and asks the attorney to decide on their behalf.
Keep the distinction clear when seeking advice. Explain whether the donor wants practical help carrying out their own decision, or whether someone proposes to decide for them under the LPA. Do not use an attorney appointment as a shortcut around an unresolved capacity or authority question.
What gifts does the law permit?
Section 12 of the Mental Capacity Act 2005 permits gifts on customary occasions to people related to or connected with the donor, including an attorney. It also permits gifts to a charity the donor supported or might have been expected to support. Each gift must not be unreasonable, considering all the circumstances and particularly the size of the donor's estate.
Customary occasions include birthdays, marriages, civil partnerships and other occasions when families or friends ordinarily give presents. The charity provision is separate; it is not confined to someone's birthday. Conditions or restrictions in the LPA also need checking. A permitted category is a starting point, not an automatic approval of any amount.
A familiar occasion does not settle the amount
A birthday can explain the occasion without establishing that a particular gift is reasonable. Consider the proposed amount in the context of the donor's resources and needs. GOV.UK's attorney guidance specifically says affordability must be checked even where the donor previously gave gifts or donations.
Our practical suggestion is to write down the financial picture before asking for advice: the proposed recipient and amount, the occasion, previous gifts, regular income, essential expenditure and known commitments. Include uncertainty about future costs rather than presenting the current bank balance as money freely available to distribute.
Record the decision and keep receipts or transfer records where a gift is properly made. A clear note should explain the reasoning, not merely state that everybody agreed. Keep the donor's funds and the attorney's personal funds distinguishable.
Family agreement cannot expand the power
An LPA cannot grant a wider gift-making authority than the law permits. OPG's guidance on preparing an LPA warns against treating gift instructions as a way to require payments that conflict with the legal framework. A preference can explain wishes without making every proposed gift lawful.
For a hypothetical example, adult siblings agree that their parent's savings should be divided equally now because that would match the family understanding. The agreement does not answer whether the parent can make the decision, whether an attorney has authority, or whether the transfer serves the parent's best interests. Those questions need separate assessment before money moves.
The Will is not an advance distribution instruction
A Will deals with what should happen after death. Identifying who may inherit later does not itself authorise an attorney to give those people the assets during the donor's lifetime. OPG says a Will may indicate wishes, but it is not permission to distribute the estate early.
If an intended gift is described as an early inheritance, bring that description to the adviser rather than relabelling it as ordinary spending. Explain the purpose honestly, identify who benefits and provide the relevant documents. Tax or estate-planning objectives need appropriate specialist advice; they do not settle the attorney-authority question.
Larger transfers, loans and property need particular care
A family loan is not automatically safer because repayment is promised. OPG warns that attorneys do not have a general authority to make loans from the donor's funds to themselves or others. Property transfers and transactions at an undervalue can raise further authority and conflict issues. Seek specialist advice before proceeding.
Do not treat a payment as an ordinary bill solely because it leaves the same account used for household expenses. Describe what is being paid for, whether anything of equivalent value is received and who receives the benefit. Care arrangements, maintenance and reimbursement can involve different questions from a straightforward present.
When Court of Protection advice is needed
Section 23 of the Mental Capacity Act allows the court to authorise gifts outside the permitted statutory scope. Where a proposed gift exceeds the attorney's authority, specialist advice may be needed about an application before the transfer. The OPG guidance also identifies narrow exceptions that require careful assessment; they are not a general allowance for family gifts.
If you are unsure, pause the proposed transfer and take the LPA, financial information and explanation of the gift to a suitable specialist. If money has already moved, preserve the records and obtain advice promptly. Do not assume a family agreement or a later repayment promise resolves the position.
Help planning an LPA
H.A. Law Advisory provides non-reserved LPA preparation and review support for suitable matters in England. We can help explain the scope of an appointment and identify issues requiring referral. We do not provide regulated financial or tax advice, conduct Court of Protection litigation or promise approval of proposed gifts.
Official guidance and legislation
General information checked on 19 October 2026. England and Wales LPA framework; H.A. Law Advisory serves clients in England and is an independent paralegal practice, not a firm of solicitors.
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