Why now is the best time to set up a Lasting Power of Attorney
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Recent findings from Just Group reveal an alarming statistic: nearly 60% of pensioners aged 75 and over have yet to set up a Lasting Power of Attorney (LPA).
Whether it’s due to a mistrust of others managing their finances or simply a lack of awareness of its importance, the absence of this critical legal document could pose serious risks.
Here at DRN, we’ll unpack what these numbers mean and why taking action is crucial.
What did the study reveal?
The research showed that a startling 59% of the estimated people aged over 75 have not yet applied for a Lasting Power of Attorney document.
Five of the top reasons people did not arrange an LPA were:
- They didn’t feel like they were at an appropriate stage of life (35%)
- A fear of giving up control (22%)
- A refusal to arrange one (15%)
- An unawareness of the importance (6%)
- They did not trust anyone with their money (5%)
Firstly, what is a Lasting Power of Attorney?
A Lasting Power of Attorney is a legal document that allows you to appoint someone to make decisions on your behalf. There are two primary types of LPA: one for property and financial affairs and one for health,welfare and social decisions.
The purpose of an LPA is to ensure that should you lose the mental capacity to make decisions, a trusted person/ persons you have appointed can do so on your behalf, as long as they act in your best interests. Both types offer a safeguard for your future, ensuring your wishes are honoured by people you have chosen and can trust.
The consequences of not establishing a Lasting Power of Attorney?
Without an LPA, you run the risk of having the court appoint a guardian or conservator to make decisions for you. This process can be lengthy and costly, and there’s no guarantee that the appointed individual will fully understand your best interests. Your assets could be frozen in the interim, and important health decisions could be left to strangers or distant relatives.
- Let’s take a closer look at what can (and does) go wrong when there is no LPA in place:
You have no say in who the court appoints as your deputy - You have no say in the scope of power granted to your deputy
- A deputy’s application could be refused, so the council could be appointed instead
- You may not be able to sell jointly held assets until the court appoints a deputy
Should you put off setting up a Lasting Power of Attorney?
While imagining a future where you can’t make your own decisions can be difficult, this isn’t a subject on which you should procrastinate. An Attorney must be appointed when you still have the mental capacity to give instructions regarding your choices and thoroughly understand the scope of the LPA.
If you lose capacity before this is done, it is too late, and your loved ones or family members must apply for deputyship via the Court of Protection. This, as explained previously, is often a lengthy and frustrating process, with annual reporting to the court, which many people find very restrictive as well as costly.
Are Lasting Power of Attorneys only for the elderly?
While the research from Just Group was on pensioners, at DRN, we urge our clients to consider that there are numerous reasons you may require assistance in the future, and not all of these are age-related.
Other examples of circumstances where a Lasting Power of Attorney may be beneficial:
- If you are diagnosed with a brain injury or tumour
- If you become seriously physically impaired or paralysed
- If you suffer a condition such as a stroke and struggle with communication
- Deafness can be very limiting for some individuals when trying to manage affairs on the phone
For that reason, we advise that everyone consider establishing Lasting Powers of Attorney, regardless of their age.
Can someone with dementia sign legal documents in the UK?
People with dementia experience the effects and progression of the condition differently. If there is doubt about their ability to understand a legal document they need to sign, additional steps may be required to assess their capacity.
If they are found not to have the mental capacity to make legal decisions for themselves, someone else will need to make these decisions for them instead. This is where, ideally, they would have already previously granted Lasting Power of Attorney to a loved one.
What if you change your mind about your attorney?
If you have previously set up an LPA, but have since changed your mind and would like to revoke this – this is a relatively easy process to do, assuming you have the mental capacity to make this decision. You would then need to start again with a new LPA. It cannot be amended.
How do you set up a Lasting Power of Attorney?
Setting up an LPA is simpler than most people think. At DRN, our team of friendly and compassionate lawyers are on hand to work with you to establish a thorough document that protects your assets, should you need it in the future. An LPA not only alleviates stress and panic for your loved ones but also safeguards your future.
Don’t be part of the 60% who leave their future to chance. Get in touch with us here at DRN Solicitors to quickly and simply set up your Lasting Power of Attorney today. Ring us on 01282 864500 or contact us here.
