Martin Lewis, the money saving expert has recently reiterated the importance of making a Lasting Power of Attorney (LPA) and we thought it would be helpful to recap how a Power of Attorney works and why it is important.
It is important to distinguish between making a Will which deals with your money and assets once you have died and making a Power of Attorney which deals with money and assets and your health when you are alive but have lost the ability to look after yourself and /or your finances mentally or physically.
For example, if you develop dementia or are involved in an accident which causes you brain damage it is wrong to assume that your family will be able to access your money even if the money is needed for your care. The money could be locked away without anyone being able to touch it. To access your money for your benefit, your family will need to apply via the Court of Protection which is costly and takes time.
This uncertainty can be avoided by making an LPA.
There are two types of Powers, one dealing with Property and Financial Affairs and the other dealing with Health and Welfare. You can make one Power, or both, whatever you prefer.
It is important to remember that an LPA does not mean that you are giving up control but you are merely providing for the future if you lose capacity yourself. You are unfortunately, unable to make an LPA once you have lost capacity in the same way that you are unable to make a Will at that stage. You must have mental capacity to be able to understand the nature and consequences of your instructions to make an LPA.
It is essential that when considering making an LPA you give careful consideration to who you wish to appoint to be your attorney/s. They must be people you trust who are over the age of 18. It is sensible to consider a replacement attorney if the attorney/attorneys you appoint die before you or for whatever reason are unable to act as your attorney. If you do not appoint a replacement and your attorney dies before you then it would be as if you had not made an LPA in the first place.
The LPA is only effective once it has been registered with the Office of Public Guardian. Regrettably at the current time, the OPG are taking a minimum of 20 weeks to register the Power from the time they receive the signed LPA. It is therefore important to factor this in when considering making an LPA.
Once the LPA has been registered by the Office of Public Guardian it would be sensible to register your Power of Attorney with the banks and services straightaway. There is often a delay depending on the particular bank and therefore if you wait until the moment you actually need to use it you may be subject to an unnecessary delay.
Some banks allow registration of the LPAs online; other banks you will need to make an appointment to go into the branch. You can provide the banks with a copy of the LPA certified by a solicitor rather than handing over the original LPA.
We offer a fixed fee service for preparing one or both LPAs which includes the registration fee of £82.00 per power payable to the Office of Public Guardian.
If you have been persuaded by Martin Lewis or you have been considering making an LPA in any event, you should not hesitate to contact RJT Solicitors on 01257 228027 or rachel@rjtsolicitors.co.uk
