Do I need a lasting power of attorney?

Graham Hearnden, of Trust Matters Group in St Albans, warns about the dangers of not having lasting powers of attorney in place

As people are living longer, so too will there be an increase in the number of people expected to need to give a third party power over their affairs.

Lasting powers of attorney (LPA) are legal documents that let you appoint one or more people (known as ‘attorneys’) to help you make decisions or to make decisions on your behalf in the case of loss of mental or physical capacity. This must be set up before that occurs as once you have lost capacity, it’s too late and only a deputyship is possible.

It can take months to apply for deputyship once someone is unable to look after their own affairs, and the fees to apply can be costly. These can include solicitor fees to apply for deputyship, an assessment from a GP and fees to apply to the Court of Protection (£ 365). In some cases, you must also take out a bond to insure against misuse of funds, which must be paid for annually. There’s also an annual ‘supervision fee’ to the Office of the Public Guardian (£ 320 per annum and, in the first year, an extra £100 assessment fee).

The person authorised by the Court of Protection to handle your affairs on your behalf is not only unlikely to be who you would have chosen, but may even be a court official — who can charge every time he/she acts for you.

By contrast, once an LPA has been granted, it doesn’t need to be renewed. The LPA rules, introduced in 2007, have enhanced the protection offered and ensure people are of sound mind when they set it up.

Those with dementia are particularly vulnerable to the theft or illegal use of their property, money or other valuables. Those without an LPA are powerless to intervene.

The delay involved in obtaining deputyship could also cause serious harm as finances are left inaccessible for several months. It’s also not a solution for those needing help in managing their affairs to give PINs or bank details to their children, as this could jeopardise the parents’ ability to recover losses if the account is hacked with no LPA in place.

There are two types of lasting power of attorney: property and financial affairs; and health and welfare. It’s important to note that existing enduring powers of attorney are still valid, but they only cover property and financial affairs.

Trust Matters is able to deal with all the legal requirements surrounding the drafting of an LPA, including preparing your documents, liaising with the Office of the Public Guardian and registering your documents.