Lasting Powers of Attorney

 

It may be common sense that everyone should make a Will, unfortunately what many people do not consider is what would happen if they could no longer manage their own affairs. Any adult of sound mind can make a Lasting Power of Attorney in which they can appoint an attorney or attorneys to manage their affairs on their behalf.  If you require advice on managing the affairs of somebody who has already lost mental capacity please see the section below headed applying to be made a deputy.

 

There are two types of Lasting Powers of Attorney, those which deal with your Property and Affairs and those which deal with your Personal Welfare.

 

This Lasting Power of Attorney allows an individual to appoint their attorney to manage their financial and property affairs. This would, for example, allow the attorney to manage their bank accounts, pay bills and if necessary sell property.

 

The attorney under this Lasting Power of Attorney can make decisions on your behalf which could include where you are to live and whether care home accommodation may be appropriate. The attorney can also make decisions about medical treatment and if given the power they can also make decisions regarding life sustaining treatment.

 

Both types of Lasting Power of Attorney have common features. The most important point is that, to be effective, both types of Lasting Powers of Attorney must be registered with the Office of the Public Guardian.  For those making a Lasting Power of Attorney for their Property and Affairs it is often the case that the document is executed but not registered until actually needed. 

The Lasting Power of Attorney gives the donor (the person making the Lasting Power of Attorney) a degree of freedom as to how it operates. It is possible to appoint more than one attorney, provide guidance to their attorneys and place restrictions on them.

Clearly the attorney has a very important and powerful role and we strongly recommend legal advice is sought before making a Lasting Power of Attorney. If you would like further information or would like to make a Lasting Power of Attorney please contact our specialist Private Client team.

 

If you have concerns about a friend or relative’s capacity and they need help to manage their affairs it may not be possible for that individual to make a Lasting Power of Attorney. In this case there is a different procedure to follow by which you can apply to be made a deputy. The procedure is administered by the Office of the Public Guardian.

If the application is successful the Court will grant an order which will set out the extent of your powers. These powers are determined by considering the individual’s needs and circumstances and can include powers relating to the individual’s finances and personal welfare.

If you require any advice regarding an application to be made a deputy please contact our specialist Private Client team.

 

If you need someone to manage your financial affairs for a temporary period, for example, you are working overseas for a period of time, you may wish to appoint a friend, relative or professional as an attorney.

The significant difference between an ordinary power of attorney and a Lasting Power of Attorney is that should you lose mental capacity the ordinary power of attorney will immediately cease to be effective, whereas the Lasting Power of Attorney (assuming it is registered) would continue to be effective.