Lowes Magazine Issue 116

ADVICE

Lasting Power of Attorney now digital

SETTING UP A LASTING POWER OF ATTORNEY (LPA) has now become easier. With the ageing demographic of the UK and the high probability that current generations could live markedly longer than previous ones, there is an increased likelihood that some individuals will need someone to take charge of their affairs should they be unable to make decisions for themselves. We consider it important that as clients get older they put in place a Lasting Power of Attorney (LPA). An LPA comes in two forms: The first, the Financial LPA, deals with property and financial affairs. This lets the individual choose one or more individuals as attorneys to make decisions about money and property for them if they are unable to do so, for example, paying bills, collecting benefits, and selling property. The second type is the Health and Welfare LPA. This allows the attorney(s) to make decisions on behalf of that person regarding their welfare, for example on matters around medical care, where the person might live (such as a care home) and allowing or refusing medical treatment. A Health and Welfare LPA can only be used once the person has become mentally incapable of making these kinds of decisions for themselves. Good financial advice can assist with the Financial LPA, helping to assess the assets that a person – or couple, where one partner has become incapacitated – may have and how best they can be employed to provide for their needs. Financial advisers can be invaluable on the health and welfare side as well, helping to take measures to ensure that should the person’s health deteriorate and they need long-term care, for example, the proper finances are in place to help enable them to receive the best living accommodation, care and attention they are able to afford. Setting up an LPA used to be a tedious and lengthy, paper-based process. Recently, the process was made digital and now forms can be completed online, the only manual element being obtaining the

witnessed signatures of the people involved. The online tool will allow those acting as an attorney to provide a secure code, which will instantaneously confirm their status and authorise them to make decisions about the person’s welfare, money or property. Also, the new tool will maintain existing checks to protect the elderly and vulnerable, including whether someone has the legal right to act as an attorney.

Risks of not putting an LPA in place Lowes Consultant Tim Dawson says: Where an individual loses capacity and there is no LPA in place then the option of obtaining a Guardianship Order can be considered. This process is considerably more complex and costly as it involves going to the Court

of Protection for a decision to be reached on the person who can look after an individual’s affairs. The person appointed is referred to as a deputy. The deputy cannot make settlements of the individual’s property or exercise their powers of a trustee. Compared to putting an LPA in place in advance, the process to appoint a deputy is much more time consuming and expensive for all those involved. A well thought-out plan implemented when the person involved is fully aware and part of the decision-making process is far better than trying to deal with a situation which has already arisen, when the parties involved may have major financial, health and welfare implications to contend with, at what can be a very emotional time. Details about the online LPA can be found at: www.gov.uk/ power-of-attorney. If you would prefer to have help with setting up an LPA, while this is not a service Lowes offers, we can put you in touch with a recommended partner firm who will be able to undertake the process for you.

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