 | There is often a reluctance to consider the possibility that we might lose capacity at some point in our lives, but it is a possibility that you need to seriously consider. Whilst it is more common to lose capacity later in life for example, due to dementia or a stroke, it can occur at any point due to accident or illness. It is well known that we should all make a Will however it is just as important to make Lasting Powers of Attorney (LPA) and everyone should consider making an LPA. Lasting Powers of Attorneys allow you to appoint attorneys to act on your behalf either to manage your finances including your home, bank accounts, pensions etc. or to make decisions regarding your care, treatment and where you might live. Here are the most important reasons you should make an LPA.
1. Choose your Attorneys The Lasting Powers of Attorney allows you to choose those that you want to act as your attorneys whether they are family, close friends or professionals. |
If you don’t make an LPA and you lose capacity, there is the
possibility that someone you would never have considered appointing as your
attorney becomes your deputy. Anyone
over the age of 18 can apply to be your deputy via the Court of Protection and
if they are not opposed, they will be appointed by the Court and they will be
able to manage your finances. It is therefore important that you make an LPA
and appoint those that you trust to act on your behalf as your attorneys.
2. Decide how and when your attorneys will act
You have the ability to nominate multiple attorneys in your LPAs and so you can decide whether you would like them to make all decisions jointly, jointly or separately or set out which decisions can be made alone and which must be made together.
LPAs can also include preferences which guide your attorneys and inform them of your wishes, which might include, ‘I would like to continue to donate £5 a month to X charity’. Alternatively, if you feel strongly that your attorneys must or must not do something in particular, you can include instructions which your attorneys are legally bound to follow, this might include for example, ‘my attorneys must seek financial advice before making investments of more than £2,000’.
There is the option to allow your attorneys to begin acting on your behalf, with your permission, as soon as the LPA is registered. This is often useful, if you need a little extra help generally or for example, you have an extended stay in hospital and need your attorneys to help until you can return home. Alternatively, you can choose to allow your attorneys to act only if you have lost capacity.
3. Reduce costs and delay
The Court application process is both costly and time-consuming and an unnecessary stress for your loved ones when faced with the daunting reality that you have lost capacity. Applications can take upwards of 6 months to be approved and this will be at a time when the court order is desperately awaited. On the contrary, LPA registration can take between 4-16 weeks however this will usually be at a time when you do not yet need to use the LPA and can therefore afford to wait.
Registration costs £82 per LPA whereas the court application for a deputyship order is £365 plus legal fees, bonds and Court monitoring fees, all of which would be payable from your estate.
It is therefore important that every person makes a Lasting Powers of Attorney to plan for the unexpected or the expected, and we would be happy to help you do so. If you would like to discuss making an LPA please contact our team in Felixstowe contact Tina Dennison-Wiggins at tina@fairstep.co.uk, fill out our contact form, or to find out more about our Lasting Powers of Attorney (LPA) services.