23 May The Importance of Lasting Powers of Attorney
You may have seen stories in the media with issues with regards to Lasting Powers of Attorney.
Why are we highlighting these issues to you? The answer is that certain scenarios happen frequently and without the right planning in place you could be at risk of not having your loved ones in control of your assets or making decisions of your health in the event of loss of capacity.
Legislation changed in 2005 when the Mental Capacity Act was introduced and as such two Lasting Powers were created, one for your Property and Financial Affairs and the other for your Health and Welfare. This has resulted in the Enduring Power of Attorney having limited powers.
If you do not have a Power of Attorney for Health and Welfare, the local authority will be in control of your Health and Welfare decisions.
This could result in being in a Care Home not local to your family or as the Covid pandemic has highlighted not being able to live with your family if the local authority has placed you under their care.
Even if you have instructions regarding your care, your loved ones cannot make that decision for you without a Lasting Power of Attorney for Health and Welfare.
Quadrant Estate Planning speaks to several families and individuals every day and what surprises them as professionals is how people will delay setting up Lasting Powers of Attorney, because they do not feel that they need them yet. The purpose of these documents is to be set up whilst you have the capacity to do so.
Quadrant receives calls daily from members of the public whereby a family member suffers from an illness or has been in an accident. Unfortunately, sometimes this is too late, the options available are limited.
Unlike the Health and Welfare Lasting Power of Attorney, if you lack capacity your family or friends can apply to the Court of Protection to be able to help you manage your finances.
If successful, the Deputy/ ies will continue to be ‘supervised’ by the Courts.
- limits to cheques to be made.
- Regarding selling property.
- Request for monies has to be made in writing.
- Periodic Court visitations.
- Continual reporting back/ provision of Accounts to the Courts.
Below is a table of the True cost for your deputy/ies.
|Application and First Year Costs||Price||Ongoing Costs|
|Medical Fee||£300 (average)|
|Deputy Assessment Fee||£100|
|OPG Supervision Fee||£500 (average)||£320|
|Security Fee||£500 (average)||£500 (average)|
|Legal Representation||£1,020 (minimum)|
|Management Fee||£1,800 (minimum)||£1,420 (minimum)|
|Annual Report Fee||£320||£320|
Quadrant Estate Planning are an experienced estate planning team who have helped clients create and set up Lasting Power of Attorney documents to help plan for the future.
Please do not delay, once a person lacks capacity it is a lengthy and expensive process to apply through the Court of Protection and too late for your family and friends to be able to make decisions regarding your Health and Welfare
Do not wait to create and register an LPA
Quadrant Estate Planning are running a limited time offer for Pocock Rutherford Clients. If you would like more information please click here which will direct to the Quadrant Estate Planning website where you can book a consultation.
Alternatively, please call them on 01442 953901 to speak with an adviser