Expert Lasting Power of Attorney Solicitors East Yorkshire and York area

Lasting Power of Attorney for Property and Financial Affairs

The best way of ensuring that someone can help you manage your affairs in the future, should it ever become necessary, is by setting up a Lasting Power of Attorney or LPA. This is a legal document that you can use to give authority to a trusted relative or close friend to make decisions on your behalf and deal with issues such as your finances.

There are two types of Lasting Power of Attorney:

• Property and financial affairs Lasting Power of Attorney
• Health and welfare Lasting Power of Attorney

This article deals with property and financial affairs LPAs.

At Lockings Solicitors, we routinely help individuals plan for the future by drafting and registering Lasting Powers of Attorney on their behalf. We have a high level of experience in assisting clients with LPAs, including in complex situations and where mental capacity is in question.

If you would like to discuss making a property and financial affairs LPA, ring for a FREE initial chat on 01482 300 200, email us at welcome@lockings.co.uk or fill in our Free Online Enquiry and we will call you back promptly.

Why is a Lasting Power of Attorney necessary?

If someone loses the ability to make their own decisions, it is not possible for anyone to simply take over for them without proper legal authority. Even a spouse or child will not be able to access a bank account, pay bills or arrange care unless they have a Lasting Power of Attorney in their favour.

When someone loses the mental capacity to manage their affairs and they do not have an LPA in place, a family member will need to apply to the Court of Protection for a deputyship order officially appointing them as the individual’s deputy.

There are some drawbacks to this option. It can take many months for an application to be submitted and approved by the court. During this period, the individual will be left with no representative and it can be very difficult if financial matters cannot be dealt with for this length of time.

A Court of Protection application is more complicated and more expensive than making and registering an LPA. There is also more ongoing supervision and expense, with the need to file an annual report, pay an annual supervision fee and purchase a security bond with an annual premium.

In contrast, making and registering an LPA is relatively straightforward and can be dealt with well in advance so that it is ready to be used, should this ever be necessary.

What authority does a property and financial affairs LPA grant to an attorney?

A property and financial affairs LPA will give an attorney authority to deal with a range of issues, including:

• Managing bank accounts
• Paying bills
• Insuring and maintaining property
• Receiving pensions payments and benefits payments
• Managing investments
• Renting out property
• Selling property, if this should be necessary
• Paying care home fees
• Making limited cash gifts on the individual’s behalf, as appropriate
• Buying equipment or personal items for the individual, as required

An LPA can be tailored to give your attorney authority as you wish. For example, you could restrict them from taking a certain action. It is also possible to give your attorney the power to use a property and financial affairs LPA while you still have mental capacity if you wish.

How do I complete a Lasting Power of Attorney for property and financial affairs form?

It is important to fill in the Lasting Power of Attorney form correctly or it will be returned by the Office of the Public Guardian.

Your name as donor of the power needs to be included along with the name of your chosen attorney. More than one attorney can be appointed if you wish. You will need to specify if they can act independently or whether all decisions should be made jointly. It is also possible to name replacement attorneys who will act if your first choice is unable or unwilling to take on the role when the time comes.

You can include a list of people to notify. They will be told when an application is made to register the LPA and will have the opportunity to raise concerns with the Office of the Public Guardian if they have any.

A ‘certificate provider’ will need to sign the LPA. This is an individual who can confirm that you have not been pressured into signing the LPA and that you understand its implications. It should either be a professional with relevant skills such as a doctor or a solicitor with experience in dealing with LPAs or an individual who has known you well for two years or more. This should not be anyone related to you or your attorney or replacement attorney.

You can list both ‘preferences’ and ‘instructions’ for your attorney. They should bear in mind your preferences when making decisions on your behalf. They will be legally bound to follow your instructions and it is important to make sure that instructions are not contradictory.

There are strict rules surrounding completion and execution of an LPA and it is important to ensure that these are followed.

We can draft an LPA on your behalf and ensure that it has been correctly signed ready for registration.

How do I register a Lasting Power of Attorney for property and financial affairs?

It is advisable to register an LPA for property and financial affairs once it has been signed. Registration is carried out by the Office of the Public Guardian. The registration process takes several months and by registering the document before it is needed, it will be ready to use, should this ever be necessary. Advance registration also means that any queries can be dealt with in plenty of time.

The LPA needs to be sent to the Office of the Public Guardian together with their registration fee, currently £82. If you are also making a health and welfare LPA, another fee of £82 is payable for this.

Before the application is made, all of the ‘people to notify’ listed on the LPA should be sent form LP3. This gives them notice of the potential registration of the LPA and they have three weeks in which to raise an objection or concern if they have one. The application can be sent as soon as the forms LP3 are sent.

Using a Lasting Power of Attorney for property and financial affairs

Once a property and financial affairs LPA has been registered, it can be kept until it is needed. If you have authorised your attorney to use it while you still have mental capacity, they can use it if you ask them to. This can be helpful if you would like them to go to the bank for you, for example.

When the Office of the Public Guardian returns the registered LPA, it will provide an LPA reference number and activation key. This gives attorneys and donors the opportunity to create an online account and add the LPA. Third party organisations such as banks can then view the LPA details by going online and entering their customer’s name and the secure access code. They will be able to check that there is a valid LPA in place and download a copy for their records.

The LPA can then be used by the attorney when dealing with property and financial matters on behalf of the individual in question.

Contact our Lasting Power of Attorney solicitors East Yorkshire and York area

If you would like to discuss making a property and financial affairs Lasting Power of Attorney, we will be happy to help.

You can ring us for a FREE initial chat on 01482 300 200, email us at welcome@lockings.co.uk or fill in our Free Online Enquiry and we will call you back promptly. We have offices in Beverley, Hull and York and deal with Lasting Powers of Attorney in East Yorkshire and the York area.