Why digital Power of Attorney would be bad news for the elderly
Our wills and probate specialist Heather Nuttall is backing fellow members of Solicitors for the Elderly in warning against proposals to turn the Lasting Power of Attorney registration process fully digital on the grounds this could lead to an increase in cases of financial abuse.
An Lasting Power of Attorney (LPA) is a powerful legal document that allows a person to appoint trusted individuals to make important decisions about their finances and property on their behalf. Under the current process, a ‘wet signature’ – the physical signing of the document – is required by individuals who wish to register an LPA. But in a paper released on Thursday, the Financial Conduct Authority (FCA) called for a fully digital system, whereby documents could be registered completely online.
Heather comments,
“We are extremely concerned by the FCA’s push for fully digital powers of attorney. Although we welcome initiatives that make LPAs more accessible, the security of older and vulnerable people is paramount. Under the current system, the FCA’s vision of a secure, end-to-end digital LPA registration process is simply not possible.
“Removing the requirement of a wet signature has the potential to put thousands of people at risk of fraud and financial abuse. An LPA requires the understanding and consent of the donor, but without the witnessing of a physical signature, what is to stop a family member or friend registering a document on someone else’s behalf, perhaps even without their knowledge?
“Lasting Powers of Attorney are extremely powerful and complex documents, and the prospect of being able to take control of someone else’s bank account and even their property with the few clicks of a button is frankly reckless.”
Heather is a member of Solicitors for the Elderly, an independent, national organisation of over 1,500 lawyers, such as solicitors, barristers, and chartered legal executives, who provide specialist legal advice for older and vulnerable people and their families.
Find out more about Solicitors for the Elderly
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.