LPAs - Buy Now or Pay Later

A family member logging onto the donor’s bank account to pay bills or pay for shopping may be committing a criminal offence under sections 1 and 2 of the Computer Misuse Act 1990 unless the bank consents to the transaction after being made aware of the above instruction in an LPA or GPA.

Court of Protection Deputyship and Power of Attorney are two legal terms you should know. It is essential to determine which one you need before proceeding.

I promised never to use "doom and gloom" to promote my services. However, sometimes the facts speak for themselves. It's only gloom if you don't do anything about it.

Before you read on, here is a quick summary.

LPAs written by Fern Wills & Trusts

Affordable fixed pricing for both LPAs/ maximum protection/ minimal paperwork/ guaranteed results.

Vs.

Deputyship

AVG £10,405 = £950 costs + £7500 over 21 yrs + up-to £4k legal fees / difficult paperwork/ average—Protection/ uncertain results.

Power of Attorney vs. Deputyship Order: which one do I need?

A Lasting Power of Attorney (LPA) and a deputyship order grant someone the legal authority to manage your affairs when you can no longer make decisions for yourself.

Create a Power of Attorney while you can. If you lose mental capacity without one, your loved ones will have to apply for a more complex and expensive deputyship order from the Court of Protection to make decisions for you.

Pros and cons of Power of Attorney

Pros

LPAs give you control over your life while allowing attorneys to act on your behalf when you can and when you can't. You can cancel or remove an attorney. LPAs provide a seamless transition for loved ones, enabling them to pay bills and manage your home. Attorneys have legal recognition and can act on your behalf in places like banks, hospitals, and health and social care. Safeguards and legislation are in place to ensure attorneys always work in the Donor's (giver of the LPA) best interest.

Cons

Your Attorney has access to all your personal information, so they must be someone you are willing to share this with. Despite safeguards, it is crucial to appoint someone you trust implicitly. Your application may be rejected if you do not follow the Office Of Public Guardians (OPG) instructions exactly. DIY or online LPAs run the risk of several unintended consequences and financial abuse in the future.

Pros and cons of a deputyship order

Pros

This is a backup if you did not have the foresight to have an LPA. If you're unable to manage your affairs, someone can apply for a deputyship order to act on your behalf, even if you don't have a Lasting Power of Attorney. They must explain to the court why they should be your deputy and obtain an order.

Cons

Applying for a Court of Protection deputyship is much more expensive than making a Lasting Power of Attorney. The paperwork is more complicated and time-consuming, with additional annual fees. Becoming a deputy is more restrictive than being an attorney, as many decisions require approval from the Court of Protection. A yearly report must be submitted. There is an estimated backlog of 100,000 cases waiting to be heard. Last year, 49,000 people died while waiting for a hearing.

Which is more expensive, a deputyship order or a Power of Attorney?

According to Martin Lewis, a Power of Attorney should cost between £200 and £500 each. Fern Wills & Trusts charges less than the minimum recommended, regardless of complexity.

All LPAs must be registered with the Office of the Public Guardia (OPG), for which there is a fee of £82 for each LPA.

Costs for a Court of Protection deputyship order at the time of writing:

• Application cost: £365
• Additional court hearing: £485
• Approved deputy registration fee: £100
• Annual general supervision fee:  £320
• Annual minimal supervision fee: £35

The courts might also ask a property and financial affairs deputy to pay a security bond, which protects a person’s finances.

When should I make a Power of Attorney?

Answer A) Yesterday

Answer B) Well before your 64th birthday. According to a recent report by Age UK, 84% of individuals subject to a Deprivation of Liberty Safeguards (DoLS) application in 2022/23 were aged 65 years or over.

Answer C) 20 weeks before you...

* drive more than the average in the UK of 127 miles per week. 

* buy a motorbike

* have one of the five most common dangerous occupations: construction, agriculture, warehousing, waste management, or emergency services.

Answer D) If you travel abroad more than twice per year. Travelling abroad can increase the risk of injury or illness due to various factors such as unfamiliar environments, different safety standards, adventurous activities, and exposure to new diseases. 

Still Unsure... See the recent Age UK article and the Martin Lewis Video. 

Contact me now at chris@fernwills.com or on the contact form on this website for a free, honest, no-obligation chat to see if an LPA suits you.