06 May 2020
Making a Lasting Power of Attorney during lockdown
It has been suggested that the Government may extend lockdown restrictions for older people for a longer period, in comparison to the rest of the population. Since controls were implemented, many people have been helping their older friends and relatives who may be more vulnerable, by running errands, picking up their shopping and keeping an eye on their wellbeing. The coronavirus crisis has also caused those who are housebound, to think about their future and who should look after their affairs if their health should start to fail.
Lucy Wood, wills, trusts and probate partner at B P Collins explains the benefits of creating Lasting Powers of Attorney.
Lasting Powers of Attorney (‘LPA’) allow you to choose someone who you trust, to act on your behalf and make financial or welfare decisions if you are unable to do so.
If you lose capacity to manage your own affairs, and you do not have an LPA (or an Enduring Power of Attorney) in place, someone will need to obtain a Court of Protection Order (COPO) to be appointed as your “Deputy” (the Court of Protection’s version of an attorney). The person appointed as Deputy might not be the incapacitated person’s first choice, in fact they could be someone with no family connections at all.
The Deputy application is a long and expensive process, there will also be ongoing fees paid to the Court, for example the annual insurance bond, and there are extensive reporting obligations to the Court on an ongoing basis.
The Deputy can only do what they have applied for under the COPO and may need to apply to court again for other decisions, so the process is more rigid, and it can take much longer for decisions to be reached.
It may work in some situations, but can add stress and burden on the Deputy, which could be avoided by creating an LPA.
How can a lawyer help?
- Although LPAs can be created without one, a lawyer can fully explain the pros and cons and what an LPA means for the donor.
- They can make sure that the donor has capacity to understand the process and that there is no undue influence involved in the making of the LPA.
- Lawyers are good sounding boards when the client is deciding who to appoint and how they can act.
- Lawyers can add an extra safeguard by storing the LPA until needed, as it is a live document once registered with the Office of Public Guardian.
- Lawyers can be appointed as attorneys too, in more complex situations.
- All advice can be conducted over a video or phone call to help you create an LPA.