Unfortunately we are all at some risk of losing mental capacity which is one very good reason to make plans to deal with such a situation should it happen.
Everyone is at risk of losing mental capacity so everyone should give serious consideration to making a Lasting Power of Attorney (LPA). This applies to any adult not just those who are moving into retirement because the need frequently arises due to injury, disease and stroke as well as the mental deterioration brought about by dementia, such as Alzheimer’s disease.
The point of having a LPA is that it allows the donor (the person making the LPA) to choose one or more trusted people to be legally allowed to make decisions for them if it ever come to a time when mental capacity is lost.
This is important because there is no automatic right granted to a spouse or civil partner to make decisions for another. Banks, building societies, and property sales or purchases can only be dealt with by the owner or someone with a Lasting Power of Attorney or acting as a deputy appointed by the Court of Protection.
Having someone appointed as a deputy is really a much less favourable process, as it is slow, can be very expensive and is always subject to Court of Protection (CoP) involvement which can prove irksome. There is also the imposition of paying a substantial annual fee to the CoP to keep the deputy registered. It does not stop there as any appearance at the court requires a fee to be paid and yet again these fees mount up. If you choose to have a solicitor represent you at any of these court hearings the additional costs can be in thousands of pounds.
There are two types of Lasting Power of Attorney. One deals with Health and Welfare and the other deals with Property and Financial Affairs. Most people chose to have the financial LPA as this is the practical solution to deal with all financial matters. Having both types is a popular choice as well as this allows for all eventualities to be dealt with by the nominated attorney.
The process takes a little time and has a requirement that the donor is assessed by a certificate provider who acts as a gatekeeper. S/he ensures the donor knows what he is doing making the LPA and why. There is also a need to ensure that the donor is not being pressurised into making it.
The important thing to know is it that it can be too late to make your Lasting Power of Attorney but not too early.
