Lasting Power of Attorney
Who would you trust more – your family or the Local Authority? If you choose your family, you must put your Lasting Power of Attorney (LPA) in place to give you peace of mind that you have taken care of the things that matter most to you.
An LPA is a powerful legal document enabling you to appoint a trusted individual of your choice (an Attorney) to handle your affairs on your behalf if you cannot look after yourself through mental or physical incapacity. Your LPA should reflect your wishes and needs.
Types of Lasting Power of Attorney
THERE ARE TWO TYPES OF LASTING POWER OF ATTORNEY
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Lasting Power of Attorney for Property & Financial Affairs – This allows the Attorney(s) to make decisions about paying bills, dealing with banks and investments, arranging, and collecting benefits and even selling property, on behalf of the Donor.
Lasting Power of attorney for Health and Welfare – This allows the Attorney(s) to make decisions for the Donor such as care issues, where the donor lives, and, where the donor wishes, giving or refusing consent to life sustaining treatment.
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WHAT HAPPENS IF I DON’T HAVE ONE?
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You may have had discussions with your loved ones about your wishes should the unthinkable happen, commonly about life sustaining treatment, medication, and long-term care. Without an LPA in place those wishes may be irrelevant, a doctor or the Local Authority will decide on your behalf. Alongside this bank accounts and investments could be frozen along with standing orders and direct debits to pay bills in your name. Even having a joint back account would not stop this happening.
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CAN I ARRANGE IT WHEN THE SITUATION ARISES?
It is too late to set up an LPA once you have a medical condition as a result of a stroke, Alzheimer’s or Dementia and have fully lost capacity or could also become mentally incapable as the result of an accident, illness, or old age. Without an LPA in place the only way your financial affairs can be managed is by an application being made to the Court of Protection for a Deputyship Order. ACT NOW before it is too late.
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DEPUTYSHIP ORDER
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If there is no LPA in place the Court of Protection will decide who looks after your affairs. This is not always the person you would have chosen. The deputyship order can take between 6 – 10 months to obtain depending on the complexity of the case. This can cause a financial burden for your loved ones, as your assets would be frozen during this period. The Deputyship Order itself is also very expensive. It is not uncommon to exceed £3000 in court and solicitor’s fees, plus an annual fee of AT LEAST £500 is also payable. Once obtained, the Deputy must always report to the court/OPG and may have to submit annual accounts for Court approval and receive periodical visits by a Court Visitor. A Deputy must account for every penny spent and any requests for money must be made to the Court in writing.
