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Managing your affairs and lasting power of attorney

We can all be guilty of taking for granted our health and in particular our mental health and spend little time to consider the consequences if either should fail. An area AWD Chase de Vere has found more and more topical with clients needs and objectives, is long term care.

As we age we find ourselves 'growing capital' for a 'rainy day' which can equate to potentially paying for care. There are a number of planning solutions that can provide for costs associated with care but as part of the discussion we should explore the topic of Lasting Power of Attorney (LPA).

This subject is an area for the legal profession, however, as a duty of care, we feel obligated to recommend that you put in place a LPA to protect you and your family should you become mentally incapacitated. We use the term 'protect' as we frequently see the look of horror on our clients' faces (and their spouses) when they realise their personal assets could be frozen for up to 6 months* pending an application to the Court of Protection.

The intention of this article is to provide you with factual information concerning a LPA not only to consider when we discuss long term care planning with you, but for all life stages and the importance of using a solicitor to ensure it is properly set up and registered so that it acts in your best interests.

LPA has replaced Enduring Power of Attorney (EPA) (although valid EPAs made before 1 October 2007 can still be used)
To be valid you must fully understand the implications of the arrangement at the time of making it
Your attorney cannot start making decisions on your behalf until the LPA has been registered by the Office of the Public Guardian, who will make sure your attorney is aware of his or her duty to act in your best interests
A separate LPA can be made to give your attorney the right to make personal welfare and medical treatment decisions on your behalf if at some time in the future you are unable to make those decisions yourself
If someone is mentally incapable of making a particular decision at a particular time, and they haven't made a LPA, and the decision isn't one that can be made on an informal basis, the matter can be referred to the Court of Protection. The Court may either choose to make the decision itself on the person's behalf, or choose someone else, known as a 'deputy', to make the decision for them
The Financial Services Authority does not regulate Lasting Power of Attorney

We are sure this is something that will be discussed at your next review, however, in the meantime please contact your adviser who will be happy to discuss LPA as part of your overall planning and if required refer an appropriate solicitor. Your adviser will also be happy to speak to any friends or family regarding their lifetime financial planning needs which may or may not include long term care.

*Source: The Law Society

Article provided by AWD Chase de Vere Wealth Management