In 2023/24, more than a million people applied for Lasting Powers of Attorney (LPA), the highest annual total on record.
LPAs enable a person to appoint others to manage their financial affairs and welfare matters should they become incapable of doing so themselves. In this article, Private Client Solicitor Simran Bains discusses the importance of putting in place LPAs and the consequences of not having LPAs if capacity is lost.
LPA for Property and Financial Affairs
This LPA gives your attorneys the power to make the following decisions:
- Managing a bank or building society account
- Paying bills
- Collecting benefits or pension
- Selling your home
- Claiming benefits
LPA for Health and Welfare
This LPA gives your attorneys the power to make the following decisions:
- Your daily routine
- Medical care
- Moving into a care home
- Life-sustaining treatment
What would happen if I lost capacity and did not have LPAs in place?
This situation could cause a lot of hardship for your loved ones. They may find themselves unable to access your finances to pay bills, care fees and so on and they may not be able to access your medical records or even liaise with medical professionals on your behalf.
To access and manage your finances on your behalf, your loved ones will have to apply to the Court of Protection for a deputyship order. This can be a complicated and time-consuming process.
So why do I need LPAs if my loved ones can make a deputyship application?
Control
You choose who you appoint as your attorneys. With a deputyship application, it is usually the next of kin who makes the application. This may not, however, be someone that you trust, or feel is the right fit for the role.
Cheaper
The process of appointing a deputy can cost anywhere up to £2,000.
Peace of mind
You and your loved ones will be reassured that you have something in place in case anything does happen and you will save them a lot of hassle and stress if you do lose capacity.
Do I need a solicitor for Lasting Power of Attorney?
- LPAs are important documents and it is vital that you seek legal advice to ensure that they are drafted in the correct way so that they are valid and can be used.
- Your solicitor can act as your Certificate Provider to confirm that you understand the document. Your family cannot do this for you.
- Solicitors have the knowledge and complete these forms day in and day out.
- If you do send your LPAs for registration and they are incorrect, you may have to start again from scratch and pay registration fees two times over. This can also cause delays with the registration of the LPAs.
If you would like to discuss putting in place LPAs, please contact Simran Bains on 0121 824 9524 or s.bains@davisons.law.
