Why make a Lasting Power of Attorney & what happens if you don’t.

 

Lasting Powers of Attorney enables you to choose people to look after your affairs in the event that you lost mental capacity and are no longer able to deal with such matters yourself.  There are two types of Lasting Power.

The first relates to Property & Financial Affairs.  This document has to be registered with the Office of the Public Guardian before it can be used and once registered it will be effective from the date of registration to the date of your eventual death when your Will takes over.  It is not possible to use a Lasting Power of Attorney once the donor (the person making it) has died.

Once registered, the chosen attorneys will be able to deal with the donor’s assets exactly as it they were him or her.  They will be able to settle bills, set up direct debits, make investments, close bank accounts and, ultimately, sell the donor’s home if that becomes necessary because, perhaps, they have gone into a nursing home and the money is required to settle fees.

If you do not put a Property & Financial Affairs LPA in place and you lose capacity the only option available is for someone to apply to the Court of Protection for a Deputyship Order.  This is costly and time consuming and once the Order is granted, the deputy is under duty to make annual reports to the Court relating to the incapacitated person’s income and expenditure.  In addition, Deputies usually have to purchase an Indemnity Bond on an annual basis to cover the assets of the incapacitated person.

In a worse case scenario you could find a deputy has been appointed who you do not know and who does not know you.  It is not unusual for the Court to appoint someone from their panel of deputies, for example a solicitor or Local Authority to act on your behalf.   Quite obviously such people would charge for their services in looking after your affairs.

Health & Welfare LPAs operate in a different way.  Again, you appoint people you trust to act as your attorneys and the LPA has to be registered before it can be used.  However, even though it is registered, it still can’t be used unless you have completely lost mental capacity (unlike the Property & Financial Affairs power).

This is because this particular LPA deals with your body, your medical treatment, where you live and can even give the attorney the power to refuse life sustaining treatment on your behalf.  Quite obviously the authorities would far rather discuss such matters with you yourself but if that is not possible because you have no understanding or, perhaps, are comatose, then they will turn to the attorney for instruction. 

Overall the benefits of putting LPAs in place are that you can choose who you would like to look after your affairs, they can be set up at any time (providing you have capacity) so that they are ready immediately they are needed (if ever) and they provide a far cheaper and less burdensome alternative to a Deputyship Order.

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Please fill in the form for our Trusted Will Writers to draw up your documents.

Cost: One type £100 or both types £150 (for the pair)