Lasting powers of attorney are different to a will. A will comes into effect once a person dies and the executors named in the will obtain a Grant of Probate in order to look after the deceased person’s estate. A lasting power of attorney, however, works whilst a person is still alive but is unable to make decisions for themselves (or if they want a person to manage their property and financial affairs whilst they have capacity but require help). This could happen for a number of reasons, including if a person had an accident or became unwell.
There are two types of lasting power of attorney. While the applications are similar, they are separate: property and financial matters, and health and welfare matters.
Lasting powers of attorney are therefore important to have in place so that important decisions can be made on your behalf, such as selling your property to afford care home fees or if you are in an accident, it allows your attorneys to make decisions about your care such as consent to medical treatment.
“They are important to get in place at any age because as we live longer, incapacity issues will continue to increase. Unlike a general deterioration in health, accidents can happen to the young and old alike. In these circumstances, preparing lasting power of attorney authority can save loved ones much time and stress at an already difficult time as they automatically have the power to deal with your affairs or important decisions on your behalf.” – Jobeth Copping-Barrett, Solicitor & Head of the Private Client Department
Where there is no power of attorney, those closest to you may have to apply to the court to appoint someone to deal with your affairs. A deputyship order is much more arduous application by comparison, in terms of both time and financial cost.
Having a lasting power of attorney in place, puts you in control. This is because you have already foreseen the risk of losing capacity and you have taken control of your affairs. You can decide who you want to appoint to deal with your financial and property matters and health and welfare affairs; which means you have ensured the people you want to manage your affairs do so. It ensures that your loved ones are able to carry out your wishes if you became incapacitated or allow them to take care of you and your finances (such as paying your bills) if you become unable to do so or require some help from them.
Your power of attorney is not valid until it has been registered with the Office of the Public Guardian. The registration fee for a lasting power of attorney application is £82. By comparison, you could expect to spend in the region of £1,500 to £3000 for a Deputyship application to cover the professional fees and court costs of £400 plus any potential ongoing costs on an annual basis.