Lasting Powers of Attorney: Don’t be afraid of the new law
There was a great flurry of activity a few years ago when lots of our clients hurried to make Enduring Powers of Attorney (EPA) before the law changed. For those who were able to do so, setting up their EPA was a wise move because it was an efficient and cost effective way of ensuring they choose who could deal with their financial affairs in the future, if necessary. Those powers remain valid.
However, if you did not give an EPA in time, you cannot now have one. The new law has introduced Lasting Powers of Attorney instead. Most solicitors predicted that the process of helping someone effect a Lasting Power of Attorney (LPA) would be a more difficult and time consuming process than before, and it is true to say that our predictions were correct in that regard.
However, LPA’s are now with us and they are not to be viewed with alarm. Indeed, the new documents have been introduced in order to minimise the risk of financial abuse for the donor and to offer you greater protection.
As there are two elements to an LPA it is more costly to prepare than its predecessor, the EPA. However, the EPA only dealt with the financial affairs of the donor. The beauty of the LPA is that it can deal with either the financial or the personal affairs of the donor, or both.
So, if you simply want an Attorney appointed for one element or the other, the cost could be halved. As a safeguard for you, the LPA needs to be registered with the Court to validate it. There is a Court fee payable, which is an additional and unavoidable cost but the effect of the new regime is that it does afford an element of protection for you and registration need not take place immediately.
A Lasting Power of Attorney is a valuable document, especially so for an elderly person who has lost or is losing the mental capacity to look after their own affairs. It gives you the opportunity to chose the right person to act on your behalf, it gives you choice and enables you to make those difficult and sometimes personal decisions to provide for your future.
We are urging our clients not to shy away from facing these issues whilst they are fit and healthy. As an incentive to act now, book your initial consultatio to consider your LPA requirements at no charge. Further, if you make an LPA and a Will together you will receive a 20% discount on the costs of making your new Will.
We look forward to seeing you very soon