A lasting power of attorney is one of the most important documents the person can have during their lifetime. Without this document in place there can be great emotional and financial stress for family and loved ones.
These documents or relatively straight forward to set up and last for the duration of life. At the end of life, the document becomes void.
Relatively inexpensive to set up during lifetime, combined with the emotional and financial stress if you do not have these documents in place it can suddenly become a daunting task. A specialist lawyer would need to be employed and sadly the time and cost can be very expensive.
The table below represents the fees that are payable and then applicable annually on an ongoing basis.
The true cost not having LPAs in place:
Instead of the above fees being applicable it is obviously wise to set these important documents up while there are still no issues withan individual’s capacity. The fees to set up and implement Lasting Powers of Attorney while there are no incapacity issues are only in their hundreds as opposed to costing thousands as shown above.
There are two types of LPA:
LPA for financial decisions
An LPA for financial decisions can be used while you still have mental capacity, or you can state that you only want it to come into force if you lose capacity.
An LPA for financial decisions can cover things such as:
- buying and selling property
- paying the mortgage
- investing money
- paying bills
- arranging repairs to property.
You can restrict the types of decisions your attorney can make or let them make all decisions on your behalf.
If you are setting up an LPA for financial decisions, your attorney must keep accounts and make sure their money is kept separate from yours. You can ask for regular details of how much is spent and how much money you have. These details can be sent to your solicitor or a family member if you lose mental capacity. This offers an extra layer of protection.
This covers health and care decisions and can only be used once you have lost mental capacity. An attorney can generally make decisions about things such as:
- where you should live
- your medical care
- what you should eat
- who you should have contact with?
- what kind ofsocial activities you should take part in.
- You can also give special permission for your attorney to make decisions about life-saving treatment.