Lasting Power of Attorney? I’ll Organise it When I Need to

Our legal team have been considering the experiences of many clients who request support to obtain Deputyship over their loved ones property and financial affairs. Often they say that they wished they had acted sooner, and made the appropriate arrangements prior to the loss of mental capacity.

BTWC write a will

 

However, when asking the said client whether they would like to protect their own property and financial affairs, through the use of a Lasting Powers of Attorney (LPA), we are often greeted with the words “no, it’s ok, I’ll organise it when I need it”.

This raises the same questions as to why people do not wish to make Wills. Is it because people believe that once they sign the Will they are going to die immediately after? In this instance lose mental capacity? It is highly unlikely in both instances.

The problem is the “when I need it” phrase. When the LPA is required it is too late to sign the document leading to the need for a Deputyship application. Many people believe loss of mental capacity is a slow process but this is not always the case e.g. a brain aneurysm. The purpose of the LPA is to cover “the what if?” situations which may occur in life.

By making plans to compile an LPA and register the document, it ensures that during a stressful time for friends and family they do not have to jump through legal hoops to assist the person who has lost mental capacity. The document is ready to be used, no delay, less costs overall, and a cheaper court fee. From the perspective of the client who makes the LPA they are safe in the knowledge that the person they wish to look after their affairs can do so.

Below we have enclosed a table demonstrating the benefits of registering a Lasting Power of Attorney as opposed to relying on a Deputyship Order.

Lasting Powers of Attorney Court of Protection Deputyship
  • Donor has Mental Capacity
  • Donor chooses who is their Attorney(s)
  • Donor can express specific things they want/do not want
  • Court fees are less
  • Solicitor fees for drafting are less
  • Easier for the Friend/Family to administer
  • Quicker and easier to get pass by the Office of the Public Guardian
  • Less problematic to Friend/Familywhen/if the Donor loses capacity
  • Protected Party lacks Mental Capacity
  • Court of Protection chooses who is the Deputy
  • Protected Party is reliant on Deputy
  • Court of Protection fees are more expensive
  • Solicitors drafting fees are higher
  • Harder to administer
  • Harder to get passed by the Court of Protection
  • Can become problematic and stressful to Friend/Family

 

If you wish to develop your skills to support your clients through their Estate Planning needs, our next 1 day Estate Planning training course is scheduled to take place on

Wednesday 30th March.

Contact us at enquiries@btwc.co.uk for further details.

You can find out more about the BTWC opportunity by clicking here