LPA Preferences and Instructions — Section 7 Explained

Instructions vs Preferences: A Legal Distinction

Section 7 of an LPA form gives the donor space to guide their attorneys, but the two categories — instructions and preferences — carry completely different legal weight. Instructions are legally binding. If the donor writes "My attorney must not sell my house without the agreement of my daughter," the attorney has no discretion. They must comply or risk the OPG investigating them for breach of duty.

Preferences are wishes the attorney should consider but can ultimately override if circumstances require. Writing "I would prefer to stay in my own home for as long as possible" gives the attorney a clear steer while leaving room to arrange care home placement if staying at home becomes unsafe.

Confusing the two can create serious problems. Overly rigid instructions can make the LPA unworkable in practice, while important wishes framed as mere preferences may be ignored without consequence.

What Banks Look For in Section 7

This is where Section 7 causes the most real-world friction. When an attorney registers an LPA with a bank, the bank's compliance team reviews Section 7 for any restrictions on financial authority. If the instructions are complex, ambiguous, or seem to limit the attorney's powers in ways the bank cannot easily interpret, the bank may refuse to complete its internal registration or act on the account — even though the LPA is validly registered with the OPG.

Common instructions that trigger bank pushback: spending caps ("my attorney may spend no more than £500 per month"), investment restrictions ("my attorney must not move funds out of NS&I Premium Bonds"), and conditional authorities that require third-party confirmation ("my attorney may only access my savings account with written agreement from my solicitor").

Banks are not equipped to monitor ongoing compliance with these kinds of conditions. Their response is typically to refuse internal registration of the LPA for that account and direct the attorney to the branch manager — who often gives the same answer.

Examples of Practical Instructions

Effective instructions are clear, specific, and do not create conditions that financial institutions cannot reasonably verify:

• "My attorneys must keep my money separate from their own at all times" (this mirrors the statutory duty, but putting it in writing reinforces accountability)
• "My attorney must not make gifts from my estate exceeding £100 per recipient per year" (clear monetary threshold)
• "If I require residential care, my attorneys must consult my daughter before choosing a care home"

Examples of Practical Preferences

Preferences give guidance without creating hard constraints:

• "I would like to remain in my own home for as long as it is safe and practical"
• "I would prefer my regular bills to be paid by direct debit from my current account"
• "I would like my attorneys to keep my family informed of major financial decisions"
• "If possible, I would like to continue my charitable donations to the RNLI"

When to Leave Section 7 Blank

For many donors, leaving Section 7 entirely blank is the best approach. The Mental Capacity Act 2005 already imposes comprehensive duties on attorneys: they must act in the donor's best interests, keep the donor's money separate, keep accurate records, and make decisions using the least restrictive option. Adding instructions that simply restate these statutory duties is unnecessary and — if worded awkwardly — can create unintended restrictions.

If the donor has straightforward finances and trusts their chosen attorneys, the statutory framework provides robust protections without Section 7.

Our LPA guide covers Section 7 in detail, including examples of instructions that cause OPG rejections and a bank compatibility check for common restriction types.

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