Unfortunately ill health, age-related conditions such as dementia or even an accident can easily steal away our ability to make important decisions regarding finances, property, health and care. This can lead to a lot of stress – not to mention expense – for those left trying to sort it all out.
A Lasting Power of Attorney (LPA) is created to allow someone else the ability to look after your affairs if your mental capacity is lost. It isn't a nice thing to think about which is why most people will put it off for as long as they can.
We can help you to ensure that when the time comes;
- Bank accounts can still be accessed and important payments processed
- Decisions can be made on the sale of your property and/or other assets
- Decisions are made on your Health and Welfare
- An expensive and complicated Court of Protection order is avoided
If you have any queries about LPAs, please do not hesitate to contact a member of our expert team, who would be more than happy to discuss with you further.
Should you have a relative or friend who has lost mental capacity, but does not have a Lasting Power of Attorney in place, then you may be able to make an application to the Court of Protection.
There are two types of LPA, which cover different areas. It is usual for most people to apply for both at the same time, but you can apply for just one if you would prefer:
I have already appointed Executors in my Will, why do I need an LPA?
The Executors named in your will can only deal with your property and affairs after your death. Executors do not have any powers during your lifetime, even if you lose mental capacity. However, you can choose to appoint the same people as your Executors and your Attorneys. Having attorneys managing your affairs during your lifetime can sometimes help the estate administration run smoothly, as the attorneys, when they become executors (if they are the same people) are already familiar with your financial affairs.
How long will it take to register an LPA?
An LPA can only be used by your attorneys after it has been registered with the OPG. This process can take several weeks.
We encourage clients to consider making an LPA before it is needed. Mental capacity can be lost gradually (perhaps as a result of dementia) or instantly (perhaps as a result of an accident or stroke). Where there are doubts about a person’s capacity it may be necessary to obtain a medical opinion which will add to the cost of the LPA and will delay the process.
What happens if I do not have an LPA?
If you do not have an LPA and you lose the mental capacity then an application may be required to the Court of Protection for one person to be appointed as your Deputy. This process can be time consuming and often takes several months. During this period your bank accounts and other assets may be inaccessible to you and your family.
Court of Protection applications can be very expensive – the Court Fee alone is £371.
How much will an LPA cost?
Our legal fees for the preparation of your LPA are fixed fees. There are no hidden extra charges. We can provide you with the detailed breakdown of the fees involved for your specific circumstances.
There will also be the court fee for each application for registration of your LPA which is currently £82.00. However, if your current income is below £12,000 per year than we could apply for a remission of this fee and reduce this amount.
How much will an LPA cost if I am receiving benefits?
If you receive any means-testing benefits, then you could be exempt from paying the court fee altogether. Please let us know if you receive any of the following benefits:-
- Income Support
- Income-based Employment and Support Allowance
- Income-based Jobseekers Allowance
- Guarantee Credit element of State Pension Credit
- Housing Benefit
- Council Tax Reduction/Support
- Local Housing Allowance
- A combination of Working Tax Credit (and at least Child Tax Credit, Disability of Working Tax Credit mor Severe Disability Element of Working Tax Credit.
- But not Disability Living Allowance, Invalidity
- Benefit or Personal Independent Payment.
- If you have been awarded more than £16,000 for personal injury damages which were ignored when they were assessed for one of the above benefits.
How will my LPA attorneys act?
You can appoint a sole attorney but we would recommend that where possible you do not appoint a sole attorney if you have other potential attorneys available, who you trust, and who would be able to work together. If you do appoint more than one attorney then you will need to consider how they will act. They can act together (known as jointly), jointly and separately (also known as severally), or jointly for some decisions and severally for others. These are described as follows:-
Joint and severally
Your attorneys can act together or separately, which can be useful if your attorneys live far apart, or if they became unable or unwilling to act, or for any other reason. However, careful consideration would need to be taken when determining this method, as one attorney may make decisions which your other attorney may not approve of and this can lead to disputes.
Jointly for all decisions
All decisions must be made together. This can cause delays, particularly if your attorneys live far apart or if they cannot agree on a decision. Furthermore, if any of your attorneys can no longer act (either by their own decision; due to illness or death; or if they became bankrupt) then your LPA will automatically be void.
Jointly for some decisions and severally for some decisions
You may decide for your attorneys to act jointly for some decisions and severally for others. In which case, you will need to set out very clear guidelines for your attorneys as to what decisions are to be made together and which can be made separately.