Understanding Lasting Powers of Attorney
Losing your mental capacity and being unable to make decisions for yourself can be daunting. A Lasting Power of Attorney is a document executed by a person before they lose capacity, and, when registered, allows those appointed to make those important life decisions on their behalf.
It is important to note that there are two types of Lasting Power of Attorney. The Lasting Power of Attorney for Property and Financial Affairs affords the attorney(s) the ability to make decisions such as:-
- Selling your home;
- Paying your mortgage;
- Paying bills; and
- Arranging repairs to your home.
As of 2007, a Lasting Power of Attorney for Health and Welfare was introduced which allows attorneys to make decisions such as:-
- Where you should live;
- Your medical care;
- What you should eat;
- Who you should have contact with;
- What social activities you should participate in; and
- In some circumstances, decisions about life-saving treatment.
Why are Lasting Powers of Attorney important?
Having a Lasting Power of Attorney in place is like having an insurance policy. We all hope that we will be able to manage our own affairs until we die without the assistance of others however for many, this is simply unrealistic.
If a person does lose capacity and does not have Lasting Powers of Attorney in place, their loved ones can be left in a precarious position. They will find it increasingly difficult to convey their opinions about your care to medical professionals and worse still, will have to make an application to the Court of Protection to be appointed as your ‘deputy’ if they wish to deal with your financial affairs. This can be extremely time-consuming and also, costly. By having a Lasting Power of Attorney you control who assists you, as you choose the person.
How do I create Lasting Powers of Attorney?
The first thing you will need to consider is who you would like to appoint to be your attorney(s). An attorney needs to be at least 18 years old, not declared bankrupt for the purposes of the Lasting Power of Attorney for Property and Finances and crucially, they need to be trustworthy. As Lasting Powers of Attorney afford the attorneys a substantial degree of power, it is vital that you trust them implicitly. You may wish to appoint a close friend or a family member. Legal professionals such as solicitors can be appointed as attorneys but it is important to consider that they are likely to make a charge.
You can appoint more than one attorney and you can also choose how you would like them to act. They can either be appointed to act together (“jointly”), jointly and separately (“severally”) which means one attorney could act alone or together with the others or finally, a combination of both. It is also advisable to consider replacement attorneys in the event of your attorneys at first instance being unable to act.
Once you have selected your attorneys and signed the documents they will be sent the Power of Attorney and asked to sign the same. It is important to remember that being an attorney is distinctly different to being the executor of a Will; it is akin to signing up for an ongoing role and accordingly, they have to agree.
Once the documents are signed, they can be submitted to the Office of the Public Guardian (“OPG”) who are a Government Body responsible for registering Lasting Powers of Attorney. At the time of writing, the OPG are quoting a period of 20 weeks to register the documents post submission.
What are the costs involved?
At Wilkinson Woodward we offer affordable rates to our clients. If you are a single person looking to create one type of Lasting Power of Attorney, our fees are £350.00 plus VAT. If you are a single person looking at making both types, we offer a slight discount of £525.00 plus VAT.
For couples wishing to make one type of Lasting Power of Attorney each, our fees are £525.00 plus VAT and if you wish to create both types each, we charge £875.00 plus VAT.
Please note that for each document to be registered, there is a registration fee of £82.00 payable to the OPG unless you qualify for a reduction or exemption.
If you require any further information or wish to enquire about creating Lasting Powers of Attorney for yourself or a loved one, please get in touch and ask to speak with a member of our friendly Private Client Team.