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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34233
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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Can a financial power of attorney authorize a business loan

Customer Question

Can a financial power of attorney authorize a business loan to a family member, if an agreement is drawn up to pay the amount back at a fixed amount per month?

Submitted: 2 years ago.
Category: Law
Expert:  UKSolicitorJA replied 2 years ago.
Hello,
What does the power of attorney say about lending money on behalf of the personal who granted the power of attorney?
Customer: replied 2 years ago.

Hello. Its a lasting power of attorney property and financial with full control.

Expert:  UKSolicitorJA replied 2 years ago.
Thank you.
Yes, the Attorney may lend money provided it is In the best interests of the grantor. It would be good to document the loan and to ensure that it is on similar terms that the attorney would enter into then dealing with his or her own affairs.
May I help further?
Customer: replied 2 years ago.

How is it deemed in the best interests of the grantor (i assume this is the person who has asked for a poa) legally? If the business loan was not for a business they had any dealing with, would that be in their best interests? Or would it not matter if the money was being repaid monthly. Sorry to ask so many questions!

Expert:  Clare replied 2 years ago.
Hi
Thank you for your question.
My name is ***** ***** I will do my best to help you
there is no basis on which such a loan could be seen as being in the Best interest of the Donor of the Power and on that basis the Power cannot be used for that purpose without the approval of the Court Of Protections
Please ask if you need further details
Clare