Do I need a Power of Attorney?
This is an increasingly popular question that Private Client lawyers are being asked.
Dementia is becoming more widely discussed, whether on TV, in the newspapers, or people experiencing a diagnosis with their loved ones. This is leading to people wanting to make sure that their loved ones are protected if the worst happens, in much the same way as Wills.
What is a Power of Attorney?
In the simplest terms, “Power of Attorney” is where a person gives someone else authority to act on their behalf.
The most common type is a Lasting Power of Attorney (LPA), which is the only way you can authorise someone to act on your behalf once you have lost capacity (though Enduring Powers of Attorney created before October 2007 can still be used as well).
What does an LPA do?
There are 2 types of LPA – one for property & finances, and one for health & welfare. An LPA allows a named person or people to act on your behalf in these particular areas. They “step into your shoes” and have an extremely wide authority to deal with your finances or welfare matters, depending on the type of LPA that is prepared. It is therefore vital that you appoint an Attorney (the person who has authority) who is trustworthy, organised and responsible.
I don’t have dementia – do I need an LPA?
LPAs can only be created whilst you have capacity to make a decision about who you would like to manage your affairs on your behalf. If you suffer a sudden head injury, or a deterioration in a medical condition, which leads to a loss of capacity then you cannot put an LPA in place.
Figures from the Office of the Public Guardian, the public body that manages the registration of these documents, show that at 31st March 2022 there were 56,862 people who were subject to Deputyship orders – these are Court orders appointing someone to manage a person’s affairs where they cannot do so themselves. Presumably, this means that almost 60,000 people either didn’t know about LPAs, or didn’t think they needed one.*
The Court process is not something we would ever advise if it can be avoided. The Court application fee alone is currently £371, compared to £164 for an LPA application. If opting for the Court process, you also have to get an expert opinion on the person’s capacity which can be an additional £200 or more on top of the application fee.
What do I do if I want to make an LPA?
Whilst the forms are available online, we regularly hear stories of applications being rejected for simple errors, and something the application fee has to be paid again when correcting the mistakes.
At Lawson-West, our team has decades of experience in dealing with creation of LPAs and also the Court application process as a last resort. To speak to one of our experienced lawyers, please don’t hesitate to get in touch on 0116 212 1000 or 01858 445 480.
[* Source: OPG annual report and accounts 2021 to 2022 - GOV.UK (www.gov.uk)
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