LPA Preferences and Instructions Examples: What to Put in Section 7

Instructions vs Preferences: The Legal Difference

Section 7 of a Lasting Power of Attorney has two distinct parts, and the difference between them matters enormously. Instructions are legally binding — attorneys must follow them. Preferences are guidance — attorneys should consider them, but they are not legally required to follow them.

Getting this distinction wrong is one of the most common causes of LPA complications. Instructions that are too restrictive can make the LPA unworkable in practice. Preferences that are worded like instructions can confuse banks and attorneys about what is mandatory.

Practical Examples of Instructions

Instructions work best when they set clear boundaries around specific types of decisions. Here are examples that function well in practice:

"My attorneys must not sell my residential property at [address] unless I require permanent residential care." This protects the family home while allowing the sale when it is genuinely needed to fund care.

"My attorneys must not make gifts exceeding £250 per recipient per year, except for gifts to charity not exceeding £500 per year in total." This sets a hard limit on gifting — an area where attorney abuse is most common. Without this restriction, the default rule under the Mental Capacity Act allows only "customary" gifts of reasonable value, which is vague.

"My attorneys must obtain two independent valuations before selling any property I own." This protects against an attorney underselling an asset.

"My attorney [Name] may only act for property and financial affairs decisions relating to my business. My attorney [Name] may act for all other property and financial affairs decisions." This divides authority by subject area when multiple attorneys are appointed.

Practical Examples of Preferences

Preferences guide attorneys without legally constraining them. They are particularly useful for expressing the donor's values and wishes:

"I would prefer to remain in my own home for as long as it is safe and practical."

"I would prefer that my attorneys consult my children before making decisions about selling my property."

"I would like my attorneys to continue making the charitable donations I currently make to [charity name], if my finances allow."

"I would like to continue attending [place of worship / community group] for as long as I am able."

What Banks Struggle With

Banks are the institution most likely to push back on Section 7 content, and certain types of instructions cause recurring problems.

Overly narrow financial thresholds: An instruction stating "my attorneys may not make any single transaction over £1,000 without both attorneys agreeing" sounds prudent, but it creates an operational nightmare for bank staff who must verify dual agreement on routine bills and care fees that frequently exceed this amount.

Ambiguous conditions: "My attorneys should act in my best interests" adds nothing — the Mental Capacity Act already requires this. It signals that the donor may not have understood what Section 7 is for, and some bank compliance teams flag these LPAs for additional review.

Instructions that reference external documents: "My attorneys must follow the wishes set out in my letter of wishes dated 15 March 2024" can create problems because the LPA and the organisation may not contain enough information to interpret or verify the instruction. Keep any legally binding instruction self-contained in Section 7.

Contradictory instructions: If the LPA says attorneys act jointly for all decisions, but Section 7 says one attorney handles property and another handles investments, the bank may refuse to act until the contradiction is resolved. If the donor lacks capacity and the wording cannot be resolved, the Court of Protection may need to give directions.

Leaving Section 7 Blank

There is nothing wrong with leaving Section 7 entirely empty. The Mental Capacity Act already provides a comprehensive framework for how attorneys must act: in the donor's best interests, with regard to their past wishes and feelings, and with the least restrictive approach possible.

A blank Section 7 gives attorneys maximum flexibility, which is often exactly what is needed when future circumstances are unpredictable. It also avoids the bank registration problems that poorly drafted instructions create.

If you choose to leave it blank, consider writing a separate, non-binding letter of wishes that you share with your attorneys. This letter can express your values, preferences, and guidance in detail without creating the legal constraints that can make an LPA impractical.

For detailed guidance on drafting workable Section 7 content, along with bank-tested templates, see our Lasting Power of Attorney guide.

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