shaw gibbs - accountants and business advisers
accountants & business advisers

Have a question? Like to know more? - Contact us or Call +44-1865 292200 or +44-20 7436 4773, Mon-Fri 8:15am - 5:15pm

*Initial meeting is free of charge

To latest news
Why should we have Lasting Powers of Attorney? - news article image

Why should we have Lasting Powers of Attorney?

14 Jun 2021

4 minute read

Lasting Powers of Attorney (LPAs) enable us to control what happens to our affairs (financial and welfare) when we are no longer able to make decisions for ourselves.

An LPA will enable you to give detailed instructions to your Attorneys which they can tailor precisely to your wishes.

For example, you can: 

  • Direct how Attorneys will make decisions on your behalf 
  • State whether Attorneys must act together in taking some decisions, but separately for others
  • Appoint replacement or substitute Attorneys; and
  • Choose who, if anyone should be notified on registration.

What happens if I do not have an LPA in place when I am unable to make decisions for myself?

It is likely that without an LPA in place then your next of kin or family will face difficulties in managing your affairs. Unless the correct measures are put in place, they will struggle to access your funds, sell or buy property on your behalf and make decisions about your care, medical treatment or life sustaining treatment. 

Therefore, a Deputyship Application will likely have to be made on your behalf to the Court of Protection.

An application to the Court will usually take around four to six months (this could be extended dependent on the complexity of the application and could therefore take around six to nine months) and can incur additional charges such as:

  • Court fee of £365 per application
  • Deputy assessment fee of £100
  • Annual Supervision fee of £35 to £320 (depending on the level of supervision ordered by the Court); and
  • Solicitor's fee to make the application are charged on an hourly rate basis and therefore you could incur legal fees of around £5,000 to £10,000 plus VAT.

For Tim Davison, Financial Planner for Shaw Gibbs, an LPA is a ‘must have’ for an elderly client to allow the Financial Planner and the trusted appointed person to ensure that all the financial arrangements are handled efficiently. 

Taking into consideration the difference in costs and the timescales, it would also be advisable to put Lasting Powers of Attorney in place sooner rather than later. In doing so, you are avoiding a rather costly and lengthy process for your next of kin or family in the future. 

The different types of LPA 

Property and Financial Affairs LPA

You can choose an Attorney/Attorneys to make all decisions concerning your property and affairs, including paying bills, making investments, buying and selling property and operating bank accounts.

  • Gives you control over what happens to your property and financial affairs if you are unable to make decisions at the time 

Health and Welfare LPA 

  • You are able to appoint an Attorney/Attorneys to make decisions concerning your health and personal welfare should you be unable to make these decisions yourself
  • Authority can be given for decisions such as where you should live and what care or medical treatment you should receive. You also have the power to authorise the attorney to give or refuse consent to life sustaining treatment. The Attorney can only use the welfare power if you have lost the capacity to make health and welfare decisions. 

Anyone over the age of 18 can apply to be appointed as deputy and they will usually require a solicitor’s ongoing advice as being a deputy can be a time consuming, complex and overwhelming position. This is why some choose to appoint a firm as deputy to save time and unnecessary stress.

Costs and Timescale

On average LPAs are drafted and registered within two to four months (dependent on the Office of the Public Guardian’s timescale for registering and returning).

The costs of drafting and registering Lasting Powers of Attorney are usually charged on a fixed fee basis. 

At Freeths LLP an individual can have an LPA drafted and registered for around £950 plus VAT (plus £82 per application registration fee). Couples are able to obtain mirror powers of attorney for around £1,250 plus VAT (one type of LPA for both, plus £164 registration fee). 

If you are interested in obtaining advice in relation to Lasting Powers of Attorney and/or are wanting to put them in place, please do not hesitate to contact Freeths LLP using the contact details provided below and we would be more than happy to discuss your options with you. 

Please note that further fee information is available upon request. For more information please contact Louise Lewis at Freeths Solicitors: Louise.Lewis@freeths.co.uk or 01865 781166

Why should we have Lasting Powers of Attorney? - news article image

Author:

Tim Davison

For more info contact us:

01865 292 200

020 7436 4773

© 2021 Shaw Gibbs Ltd

Your registration