LASTING POWERS OF ATTORNEY
A Lasting Power of Attorney grants power to someone (the attorney) to deal with the affairs of the person granting the power (the donor).
LPAs remain in effect even after the donor has lost mental capacity.
Where no LPA exists and it is too late to put one in place, the family must apply to the court to appoint a ‘deputy’. The main problem with this route is that it is costly and will usually take in excess of 6 months to complete (in some cases closer to 12 months). For these reasons, an LPA should be seriously considered by all clients who wish to avoid these potential costs and delays.
The attorney must act on behalf of the donor and in their best interests. For this reason, it is vital that sufficient thought is given to who the most appropriate attorney may be. Furthermore, knowing how wide to grant these powers can be difficult and depends upon the facts of each case.
There are two types of LPA as follows:
- Property and Financial Affairs (i.e. bank accounts, investments etc)
- Health and Welfare (i.e. decisions about medical treatment and care etc)
Each of these powers deals with different aspects of an individual’s life and can be either wide ranging or restricted to one or two specific issues.
The forms required for an LPA are quite long and can be confusing. As such, it is easy to make mistakes which may result in the LPA being rejected by the Office of the Public Guardian.
We can help simplify this process and ensure an efficient document production solution for advisers to be able to offer this vital service to their clients. Furthermore, we will provide advisers with training to advance their knowledge of this area of law to ensure you are aware of the key issues and can assist your clients with confidence.
* The information on this website is based on our interpretation of the law and HMRC practice as at April 2016. Taxation legislation and HMRC practice may be subject to unforeseen changes in the future.