We all hope that we are able to have the mental capacity to make all our own decisions during our lifetimes. Unfortunately an accident, illness or older age may make it difficult for us to operate on our own.
Few people realise that once you are unable to look after your own affairs then, at law, no one else is usually allowed to deal with your assets and other matters. Anyone doing so takes a risk until an application is made to the Court of Protection and someone is appointed as your Deputy. In addition, disputes can often start between relatives and friends, and the whole process is cumbersome, time consuming and can be costly. It is also unnecessary!
THE SOLUTION
In October 2007 the Mental Capacity Act 2005 brought in Lasting Powers of Attorney (LPAs) which replaced the old Enduring Powers of Attorney. By making a LPA now, you can arrange to avoid leaving problems for those who would care for your affairs if you cannot do so.
While you are able to decide what should happen you can grant an LPA to one or more people, together or separately, who you trust to take your affairs on board (your “Attorney(s)” ). Doing this is usually less expensive and less complicated than making an application to the Court of Protection.
There are two types of LPA that you can make:
- A Property and Affairs LPA gives Attorneys the power to operate bank accounts, make investment decisions, sign tax returns and buy and sell property. The Attorneys are not permitted to make gifts (other than those usually made by you), sign your will or act for you as a trustee or executor.
- A Health and Welfare LPA gives Attorneys the power to decide on issues such as where you will live, your care and medical treatment. Your Attorneys cannot make decisions in any area where you have the mental capacity to make the decision yourself.
You can make either or both LPAs. By making an LPA now you are taking a prudent step which will give you the peace of mind that you have safeguarded the future with a person or persons you trust.
We are experienced and highly trained in this area of law. We can help by listening to your wishes and explaining the provisions you need to incorporate to make your enduring power of attorney or lasting power of attorney suitable to meet your objectives. We will also explain your attorneys’ duties and can assist with the subsequent registration of the enduring power of attorney at the Court of Protection.
Linda Pratt is able to act as your attorney, if this would be helpful to you, and will be able to advise you of her costs for acting as your attorney before you sign any documentation.