Gifting Under a Power of Attorney

Can an attorney give gifts?

Yes, but only in narrow circumstances. An attorney under a property and financial affairs power can give gifts on the donor's behalf where the gift is on a customary occasion, goes to someone connected to the person or to a charity they supported, and is of reasonable value given the size of the estate (gov.uk, OPG, as at July 2026, subject to change). Health and welfare attorneys cannot make financial gifts.

What gifts is an attorney allowed to make?

An attorney's everyday gifting power is limited to three tests, all of which must be met: the occasion, the recipient, and the value. The Office of the Public Guardian sets out that gifts should be made on a customary occasion, to someone related or connected to the person or to a charity they supported, and of reasonable value in light of the size of the estate (gov.uk, OPG, as at July 2026, subject to change).

Test	What it means
Occasion	A customary occasion for gifts within families or among friends, such as births, birthdays, weddings, or religious festivals including Christmas, Eid, Diwali, Hanukkah or Chinese New Year.
Recipient	Someone related or connected to the person, or a charity the person already supported or might have supported.
Value	Reasonable given the circumstances and, in particular, the size of the person's estate. It must also be affordable.

Test

What it means

Occasion

A customary occasion for gifts within families or among friends, such as births, birthdays, weddings, or religious festivals including Christmas, Eid, Diwali, Hanukkah or Chinese New Year.

Recipient

Someone related or connected to the person, or a charity the person already supported or might have supported.

Value

Reasonable given the circumstances and, in particular, the size of the person's estate. It must also be affordable.

Source: gov.uk, Office of the Public Guardian, giving gifts, as at July 2026, subject to change. An attorney must also follow any conditions on gifts written into the LPA or EPA itself. For the wider role, see our note on attorney duties.

Where an attorney's power stops

The gifting power is deliberately narrow because the attorney is spending someone else's money. Every gift must be affordable and must not damage the person's ability to meet their own care and living costs for the rest of their life, and it must be in their best interests under the Mental Capacity Act (gov.uk, OPG, as at July 2026, subject to change). A gift that goes beyond these limits can be challenged.

The inheritance tax gift allowances are a separate matter. The annual exemption of £3,000, the £250 small-gift allowance, and wedding gifts of up to £5,000 to a child are tax rules for people managing their own money, not a licence for an attorney to give at those levels (gov.uk, rules on giving gifts, as at July 2026, subject to change). An attorney who wants to use them for tax planning, or to make outright gifts that might fall outside the estate under the 7-year gift rule, generally needs Court of Protection approval first.

Sources: gov.uk, OPG and gov.uk, giving gifts, as at July 2026, subject to change.

When is Court of Protection approval needed?

Approval is needed whenever a proposed gift goes beyond the modest, customary limits. The Office of the Public Guardian states that an attorney should apply to the Court of Protection for gifts that exceed what is reasonable given the estate, gifts of property or land, loans from the person's funds, gifts made for inheritance tax planning, and situations where the attorney has a conflict of interest (gov.uk, OPG, as at July 2026, subject to change).

Larger gifts. Anything beyond a reasonable customary gift for the size of the estate.

Tax planning. Gifts intended to reduce a future inheritance tax bill.

Property, loans and interest-free lending. Gifts of land or a home, and loans from the person's money.

Conflicts. Where the attorney or a close relation would benefit.

Source: gov.uk, Office of the Public Guardian, giving gifts, as at July 2026, subject to change. Making a gift beyond your authority can lead the OPG to ask you to seek retrospective approval, or in serious cases to apply to have you removed.

A worked example (illustration only). An attorney manages the finances of her father, who has lost capacity. On his granddaughter's birthday she gives £100 from his account, an occasion and a recipient he had regularly marked, and the sum is comfortably affordable against his savings. That is likely within the customary gifting power (gov.uk, OPG, as at July 2026, subject to change). If instead she wanted to give each grandchild £3,000 a year to use his inheritance tax annual exemption (gov.uk, as at July 2026, subject to change), that is tax planning and would generally need Court of Protection approval first. Every case turns on its own facts, so this is general information rather than advice.

Gifting, care fees and deprivation of assets

An attorney cannot give assets away to reduce a person's own contribution to care fees. Where a local authority assesses someone for help with care costs, it can look at whether assets were deliberately given away to reduce that contribution, and transferring an asset out of the person's name does not necessarily remove it from the assessment (gov.uk, OPG, as at July 2026, subject to change). This is known as deprivation of assets.

For that reason, gifting is not a route an attorney can use to plan around care fees, and doing so can be challenged and unwound. Care fees planning that involves giving assets away is one area where many people choose to take advice from a solicitor or a qualified financial adviser before anything is done, and an attorney would generally need the court's approval in any event. It can be worth discussing with a qualified professional.

Gifting under a power of attorney in Scotland and Northern Ireland

This guide describes the law of England and Wales, where the Mental Capacity Act 2005 and the Office of the Public Guardian govern how attorneys make gifts (gov.uk, OPG, as at July 2026, subject to change). Scotland has its own system of continuing and welfare powers of attorney, supervised by the Office of the Public Guardian (Scotland), and Northern Ireland operates a separate but broadly comparable regime. The general principle that gifts must be limited, affordable and in the person's interests is common across the UK, but the detailed rules and the supervising bodies differ, so it can be worth taking advice in the relevant nation.

Frequently asked questions

Can an attorney give gifts to themselves?

Only within the same narrow limits that apply to any gift, and with real caution. An attorney who gives to themselves has a clear conflict of interest, which the Office of the Public Guardian treats as a reason to apply to the Court of Protection (gov.uk, OPG, as at July 2026, subject to change). A modest customary gift the person would ordinarily have made may be acceptable; anything larger generally needs approval.

How much can an attorney gift without permission?

There is no fixed cash limit. A gift must be on a customary occasion, to a connected person or a supported charity, and of reasonable value given the size of the estate, as well as affordable and in the person's best interests (gov.uk, OPG, as at July 2026, subject to change). What is reasonable for a large estate may be excessive for a small one, so it depends on circumstances.

Can an attorney use the £3,000 inheritance tax gift allowance?

Not freely. The £3,000 annual exemption and other gift allowances are inheritance tax rules for people managing their own money (gov.uk, as at July 2026, subject to change). An attorney who wants to make gifts at that level for tax planning generally needs Court of Protection approval, because using them is treated as inheritance tax planning rather than ordinary customary gifting.

Can an attorney give money away to reduce care fees?

No. Giving assets away to reduce a person's own care contribution can be treated by a local authority as deliberate deprivation of assets, and moving an asset out of someone's name does not necessarily remove it from a care assessment (gov.uk, OPG, as at July 2026, subject to change). An attorney should not use gifting to plan around care fees, and doing so can be challenged and unwound.

What happens if an attorney makes an unauthorised gift?

The Office of the Public Guardian may ask the attorney to apply to the Court of Protection for retrospective approval, and in serious cases can apply to have the attorney removed (gov.uk, OPG, as at July 2026, subject to change). The attorney may also have to repay the money. Keeping clear records and staying within the customary limits helps avoid this.

Can a health and welfare attorney make gifts?

No. Only an attorney acting under a property and financial affairs Lasting Power of Attorney, or an older Enduring Power of Attorney, can make financial gifts. A health and welfare attorney cannot give gifts of money or property (gov.uk, OPG, as at July 2026, subject to change). The two types of power cover different decisions.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.

Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ. Figures and rules are current as at July 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.

Gifting Under a Power of Attorney: The Rules