AS WE GROW OLDER, MANY OF US WORRY ABOUT OUR FINANCIAL AFFAIRS, and how we can manage them as we become too old ; frail or confused to handle them properly. We often have no alternative but to turn to friends or relatives to help.

This is only a short-term solution and a longer-term arrangement will have to be made as we grow even older. THE POWER OF ATTORNEY is the answer to our problems, and it is at this time that it should be used. However, this is not the age at which we need to be making decisions which could have serious implications on our finances. We need to sort them out  much earlier.

WHAT IS A POWER OF ATTORNEY?

A POWER OF ATTORNEY is a legal document which gives to another person or persons the right to act on our behalf, and this document is recognized in law, it proves that we have given authority for someone else to act for us, either fully or with restricted powers, i.e.: selling our house or other property; having access to our Bank Account or Building Society Savings and signing legal documents on our behalf. The Lasting Power of Attorney cannot be used until it is registered with the Public Guardians office.

WHO SHOULD I APPOINT TO ACT FOR ME?

We can appoint anyone who is an adult i.e.: aged 18 years of age or more or we can appoint a professional Attorney. Obviously it must be someone whom we can trust implicitly since we are giving over control of our property.

Until a few years ago an ordinary Power of Attorney was used and it was only valid while the person giving the  authority  was of sound mind and able to supervise the activities of the person acting on their behalf. AT A TIME WHEN THE NEED FOR AN ATTORNEY WAS GREATEST THE POWER CAME TO AN END.

This was eventually recognised by the Authorities to be poor legislation and so THE LASTING POWER OF ATTORNEY came into being allowing an Attorney to continue even though we have become mentally incapable of action.

WE CAN NOW GIVE WIDE POWERS ( AT OUR DISCRETION) TO AN ATTORNEY WHILE WE ARE CAPABLE OF RATIONAL THOUGHT IN ANTICIPATION OF A TIME WHEN WE MAY NOT BE ABLE TO DO SO.

Filling in our Tax Returns; having access to our savings; completing our cheques and even selling off our property. The decision is ours to make and the restrictions are imposed by us. The fact that we have signed a Deed does not mean that it comes into effect immediately, we can delay handing over authority for as long as we are able to act for ourselves and we can take the authority back if we recover our power to act independently and we are mentally capable of doing so.

JUST WHAT CAN MY ATTORNEY DO?

Basically anything which we could have done for ourselves, including:

• Giving birthday presents or other gifts
• Giving to charities
• Make purchases on our behalf
• Sign documents for us
• Deal with all financial matters

Our Attorney can even make payments to him/herself so the element of trust is essential.

WHAT HAPPENS IF I BECOME MENTALLY INCAPABLE?

Our Attorney is obliged to apply to the Public Trustee Office Protection Division for registration of the Power of Attorney. The Protection Division then has the means to supervise the manner in which the Power of Attorney is exercised.

Additionally it is necessary to give notice to our close relatives so that if our family objects to the Attorney for any reason then they have an opportunity to oppose the appointment. This could be sustained if they feel that the appointment was obtained by exerting pressure or possibly fraud. YOUR AFFAIRS ARE THEREFORE WELL PROTECTED.

IF I DO NOTHING -  WHAT HAPPENS?

Where no LPA exists, and we lose our mental faculties, it is necessary for somebody to make an application for Receivership to the Court of Protection, causing delays, which could be to our detriment.

THE COURT OF PROTECTION HAS RESPONSIBILITIES WHICH REQUIRE ANNUAL FEES TO BE PAID FROM OUR ESTATE. IF WE HAVE AN INCOME OF £3-£5000 PER ANNUM THE ANNUAL FEES ARE £225. £15000 ANNUAL INCOME WOULD GENERATE A FEE OF £850 PER ANNUM AND COSTS ESCULATE FROM THIS POINT. A POWER OF ATTORNEY ATTRACTS A ONE OFF FEE OF £50.

WHAT SHOULD I DO?

If you think that you should look into this further and would like more information please contact us and we will be happy to advise you. Please note that these comments are of necessity very general.