A Lasting Power of Attorney (LPA) can be an incredibly helpful way of allowing a person you trust to manage your affairs once you are no longer capable.
Ideally, an LPA should be executed well in advance of any incapacity. But so long as the person signing the document still understands its full meaning and effect, it is still possible for them to sign a valid LPA.
The benefits of an LPA
There are two different types of LPA, one in respect of health and welfare and one which relates to financial matters. By putting them in place while you are able to, your Attorney will be able to act on your behalf in the future, should you become unable to manage your own affairs.
A health and welfare LPA will only be activated once capacity has been lost. A financial LPA can be used before that time so that an Attorney can help someone manage their affairs, for example, by going to the bank on their behalf.
Proving mental capacity when making an LPA
With the onset of a degenerative disease, such as Alzheimer’s disease, many people realise that they will need an LPA to enable someone they trust to act on their behalf.
There will come a point when they lack the mental capacity to put an LPA in place, but at the onset of a degenerative disease there is often still time to arrange their affairs, provided they can demonstrate that they have sufficient mental capacity to understand the effect of the documents they are signing.
The Mental Capacity Act 2005 states that to have capacity to execute an LPA, an individual must have all of the relevant information about LPAs, be able to retain the information and be able to consider the information and make the decision to make an LPA.
No-one may influence them in their decision and they must be able to communicate it, even if it is only by movement or signs.
Once someone has been diagnosed with a degenerative disease, it is always advisable to have an assessment of their capacity carried out before the LPA is executed. This can be done by a GP or social worker, who can also witness the document.
If someone lacks the mental capacity to make an LPA, then their relatives can make an application to the court for a Deputyship Order. This can be a lengthy and expensive process with more ongoing costs than those associated with an LPA.
The best option is usually to sign an LPA well in advance of when it is needed. It does not need to be put into force until such time as capacity is lost.
If you would like to speak to an expert in LPAs and Wills, ring us on 01243 216900 or email us at email@example.com.
A Property and Financial Lasting Power of Attorney (LPA) can be an incredibly helpful way of allowing a person you trust to manage your financial affairs if you are not able to do this yourself.
We are all witnessing how our massive sophisticated planet and civilisation can be brought so low by the tiniest organisms and are living through very challenging times. We will also know people who are self-isolating and who are ill and these individuals are very vulnerable indeed and need all of the help they can get. An LPA can provide just that help, enabling trusted individuals to carry out key tasks that may just be too difficult for individuals at the moment.
Ideally, an LPA should be executed well in advance of any period of illness or incapacity. But so long as the person signing the document still understands its full meaning and effect, it is still possible for them to sign a valid LPA.
The benefits of a property and financial LPA
Trusted individuals can (as soon as the document is registered with the court) step into your shoes and carry on your financial life for you, involving you in all decisions but otherwise relieve you of the day to day burden of managing your financial life while coping with the crisis in hand.
The best option is usually to sign an LPA well in advance of when it is needed. It does not need to be put into force until such time as capacity is lost but you will need to bear in mind that the court will take about 8 weeks to register a document and so the sooner you start the process, the better.
If you would like to speak to an expert in LPAs and Wills, ring us on 01243 216900 or email us at firstname.lastname@example.org.
A Lasting Power of Attorney (LPA) is an official legal document appointing someone to act on your behalf should you one day become incapable of managing your affairs.
There are two types of LPA, one for financial matters and one for health and welfare. You can have one or both in place. They do not have to be used immediately they are signed, but can be registered so that they are ready when needed.
What happens if you don’t have an LPA
If you do not have an LPA in place and you should one day be unable to manage your affairs or make decisions, then no-one automatically has the right to act on your behalf, even if they are close family members.
They would need to apply to the court for a Deputyship Order, which can be a lengthy process and is considerably more expensive than making and registering an LPA. As well as the initial costs of a deputyship application, there are ongoing charges including the annual supervision fee and annual security bond fee.
Putting an LPA in place
An LPA is a fairly simple document appointing someone you trust to deal with your affairs on your behalf in the event that you cannot do so yourself.
A property and financial affairs LPA
A property and financial affairs LPA can come into effect when you choose, so you do not need to wait until you no longer have the mental capacity to make decisions. This can be useful if, for example, you have mobility issues, as your Attorney could go to the bank and other financial institutions on your behalf.
You can word the LPA to give your Attorney the power to deal with all of your property, money and other assets or you can choose to limit it to certain specified transactions or accounts.
A health and welfare LPA
This type of LPA allows your Attorney to make decisions about medical treatment, care and other welfare issues.
You can opt to expressly give the Attorney the power to make decisions about life-saving treatment.
A health and welfare LPA can only be used by your Attorney once you are no longer able to make decisions for yourself.
Putting an LPA into force
An LPA needs to be registered with the Office of the Public Guardian before it can be used. By registering it straight away, it will already be in place when required. Otherwise there may be a delay of up to three months while the court processes the application.
If you would like help in making an LPA, speak to one of our expert lawyers on 01243 216900 or email us at email@example.com.
A Lasting Power of Attorney (LPA) allows you to appoint an attorney to deal with your affairs once you are no longer capable of doing so yourself. If you do not have an LPA, then your family will have to apply for a Deputyship Order to allow someone to help you.
There are two types of LPA: one for dealing with your property and financial affairs and one for your health and welfare.
You can choose a different attorney for each LPA if you wish, and the document will not come into effect until it is registered, allowing you to execute it well before it is needed.
If you don’t have an LPA
If you become unable to manage your affairs and you have not executed an LPA, then your family will need to apply to the Court of Protection for a Deputyship Order to appoint a deputy to act on your behalf.
This application can take several months to process and will need supporting evidence, such as a medical assessment.
It is also an expensive procedure, with court application and hearing fees of several hundred pounds each, medical assessment fees and, if a professional deputy is appointed, their ongoing charges. There will also be legal expenses if your family need help navigating the process.
In contrast, the cost of executing an LPA is relatively low, and the registration fee is currently £82.
Why an LPA is the best solution
As well as being a difficult, expensive and time-consuming process to appoint a deputy, it can mean that for a time no-one is able to help you with your affairs.
If you have become unable to deal with them yourself, there may be several months when your finances cannot be managed. This can be a big strain on those trying to help you, particularly if bills need to be paid or services ordered.
With regard to your health and welfare, the Court of Protection prefers not to appoint a deputy to act in respect of all of an individual’s health and welfare needs. The court will rule on single issues if agreement cannot be reached, but generally a collaborative approach is preferred, with family and healthcare professionals acting together.
Therefore if you want to choose someone to act for you in health and welfare matters, you should execute an LPA in their favour. It will not be used until and unless you become unable to make your own decisions.
If you plan in advance and execute LPAs, you also have the option of appointing more than one attorney and including back-ups in case they are unable to take on the role. You can talk things through in advance with them and explain what you would like them to do for you.
To speak to one of our expert solicitors, call legalmatters on 01243 216900 or email us at firstname.lastname@example.org.
Signing a Lasting Power of Attorney (LPA) document authorises someone to deal with matters on your behalf, should you become unable to do so yourself.
There are two types of LPAs, one covering property and financial affairs and one covering health and welfare.
It is possible to ask your attorney to deal with your property and financial matters while you are still capable, for example if you have limited mobility and find it difficult to get to your bank. Your health and welfare matters can only be dealt with by your attorney once you can no longer make decisions for yourself.
You can choose to sign only one type of LPA if you wish.
Who should you appoint?
You should choose someone whom you trust implicitly, as they will potentially have a great deal of say over your life and financial affairs.
Your attorney needs to be aged 18 or over and in respect of a financial and property LPA you cannot appoint anyone who has been declared bankrupt or who is subject to a debt relief order.
If you do not feel that you have a family member or close friend who can act on your behalf, it is possible to appoint a professional such as a solicitor, who will charge a fee to deal with your affairs and who will be under a duty to act in your best interests.
Once your LPA is registered with the Office of the Public Guardian (OPG), your attorney will be supervised by them. This could include a visit to you or contact to ensure your attorney is acting effectively. After the first year it is likely that the supervision will be fairly minimal.
What your attorney needs to know
You should ensure that your attorney is happy to be appointed, and that they know what responsibilities this will entail. For example, they will be required to submit an annual report to the OPG explaining the reasoning behind the decisions they have made on your behalf and why they believe the decisions were in your best interests, as well as submitting financial details such as bank statements.
Give your attorney as much information up front as you can, letting them know what you will expect them to do for you and the scope of what they will be dealing with.
Let them think it through carefully and without pressure so that they can make the right decision. If they do choose to act, then discuss your wishes with them so that when the time comes, they will know how you would like them to proceed.
It is a good idea to have a second-choice attorney in place, in case your first-choice is unable or unwilling to act when you finally need them to.
If you would like to discuss appointing an attorney, call legalmatters on 01243 216900 or email us at email@example.com.
Nearly two million people are due a refund after the Office of the Public Guardian (OPG) overcharged for registering a Lasting Power of Attorney (LPA).
An LPA gives someone the right to manage your affairs after you become incapable of doing so. You can execute an LPA in respect of your health and welfare and/or in respect of your property and financial affairs.
The Ministry of Justice has announced that the OPG overcharged those who registered an LPA between 1 April 2013 and 31 March 2017, and that they are entitled to a refund.
So far only 200,000 claims have been made out of 1.8 million who are qualified to do so.
Making a claim
Either a donor or an attorney can make the claim. They will need to supply the donor’s bank details, as the payment will be made to the donor. A copy of the LPA should also be included.
The claim form can be accessed via the government information page https://www.gov.uk/power-of-attorney-refund. In some cases, including where the donor does not have a bank account or the applicant is a court-appointed deputy, the claim will need to be made by phone by calling the helpline on 0300 456 0300, option 6. The deadline for claims is 1 February 2021.
How much will be refunded?
The amount of the refund will depend on when the LPA was registered, as fees paid differed over the time period in question.
Date Fee Paid Refund
April to Sept 2013 £54
Oct 2013 to March 2014 £34
April 2014 to March 2015 £37
April 2015 to March 2016 £38
April 2016 to March 2017 £45
A claim can be made for each LPA registered. Interest will also be paid at a rate of 0.5 percent.
Who needs an LPA?
It is advisable for everyone to take the time to make an LPA, so that in the event they become unable to manage their affairs, either through illness, injury or incapacity, their chosen attorney can step in to help.
In the absence of an LPA, application would need to be made to the court, which could be an expensive and time-consuming process. This could also mean that you might not have your first choice of attorney acting for you.
You can execute an LPA, then keep it until such time as it is needed, at which point it is registered with the OPG.
If you would like to talk to one of our expert lawyers about drawing up an LPA, call legalmatters on 01243 216900 or email us at firstname.lastname@example.org.
A recent survey has revealed that a staggering number of people have granted relatives informal access to their bank accounts.
A Lasting Power of Attorney (LPA) is a formal document by which an individual can give one or more people access to their financial affairs and the power to spend money on their behalf.
It is relatively simple to set up and register, but it seems that many older people are choosing to give others informal access to their bank accounts instead.
A recent survey carried out by the Co-operative Society found that a quarter of over-45 year olds have been given access to the bank account of someone other than their spouse.
While this may seem like an easy solution to allow people to help out older relatives, the truth of the matter is that there are serious implications for all involved.
Why granting informal access to a bank account should be avoided.
Firstly, there is no protection for the owner of the bank account. The access will not be supervised in any way and it may become increasingly hard for the person granting the access to keep a check on their finances.
It offers great scope for abuse by the person to whom the access is granted. While they may start out with good intentions, the temptation to misappropriate funds might be hard to resist.
If the person owning the bank account dies, the administration of their estate may be delayed as investigations are made into any improper use of funds by the person with access.
There is also room for suspicion by other relatives if there has been no supervision over years of informal access.
The advantages of using a Lasting Power of Attorney.
By using a formal document to give someone official access to your financial affairs, everything is kept above board and visible.
There is far less scope for abuse as the document is registered with the Office of the Public Guardian (OPG) once it is put into use and the OPG will supervise the attorney’s activities.
If the OPG suspects that the best interests of the person granting the LPA are not being observed, they have the power to investigate. They can remove the attorney and appoint a replacement if they find any impropriety.
How to set up a Lasting Power of Attorney
An LPA can be completed before it is needed and then kept until the time that you decide you need an attorney to help with your affairs, when it will be officially registered.
To speak to one of our expert team about setting up an LPA, call us on 01243 216900 or email us at email@example.com.
There may be times in your life when you’re unable to manage your own personal affairs. Sickness, injury, old age and short-term incapacity can leave you unable to make decisions about your wellbeing.
While a daunting thought, in advance of these circumstances, you can grant legal authority to someone you trust to make a decision on your behalf.
This is done by completing a Lasting Power of Attorney (LPA) and it legally authorises a designated individual or individuals to take care of your personal matters for you.
Two types of LPA
You can apply for a Health and Welfare LPA or a Property and Financial Affairs LPA. Often, both are applied for together, allowing the attorney to make a decision in both areas and protect the overall wellbeing of their friend or family member.
The Health and Welfare LPA covers matters around your physical care and welfare. Your attorney may be required to make important decisions about any medical treatment you are given, your housing, your general care, and also whereabouts you are cared for. So it’s essential that you select a person you trust, and who will advocate for you when they are required to speak on your behalf.
When it comes to the Property and Financial Affairs LPA, the purpose of this agreement is to make a decision on your financial wellbeing and manage your finances day to day. This could include being responsible for your home, any financial assets, as well as your bank account and savings. It’s important to select someone who will manage your financial affairs soundly.
How to choose your Attorney?
Becoming an Attorney is a big responsibility, and it’s essential to choose someone that you trust. Whether Financial, Welfare or both, you need to be assured that they will behave with integrity, advocate for you when you are unable to, and make often difficult decisions that are in line with your values and instructions (which you can set out in your LPA). It’s worth noting that you can choose more than one Attorney and prepare a stand-in in the event that your original choice is unable to or fails to act.
What is a Certificate Provider?
A Certificate Provider is required to counter-sign your LPA. This protects potentially vulnerable people from being coerced into designating Power of Attorney to someone against their will. Typically, friends, neighbours or the medical community can provide this role. However, they are required to have known you for a minimum of two years.
How do I complete the paperwork?
It’s always smart to consult with a lawyer before you begin your LPA process. A lawyer will also ensure that your paperwork is registered with the Office of Public Guardian (OPG).
To find out more, why not download our “Free Guide to Lasting Powers of Attorney” or talk to one of our experts to learn how we can help you to create and register either or both kinds of LPA. Call us on 01243 216900 or email us at firstname.lastname@example.org.