Why Lasting Power of Attorney?

Why Do I Need A Lasting Power of Attorney? (Really, TWO!)

The conventional wisdom is that you don’t need LPAs until you are old, whereas you actually need (ideally) to set them up on your 18th birthday.

why do I need a lasting power of attorney?
18th birthday present?

Why Lasting Power of Attorney? Because up until your 18th birthday, your parents can make decisions on your behalf.  Once you are 18, they have no legal control over you, so if you fall off your bike, get spiked or fall off a mountain, they have no legal control over what happens to you or your assets. I have personally seen several perfectly competent people permanently lose capacity after drug misadventures, and the prevalence of those seems to be rising.

Who does?  Social Services will step in to take any immediately necessary action and report to the Court of Protection with further recommendations.

If you recover rapidly, it probably isn’t a big deal. Unless there are important decisions which cannot be delayed such as exchanging contracts or completing a house sale. The Eisenhower Matrix is an interesting way of viewing of what is and what is not both urgent AND important.  Many decisions can be deferred until recovery, but medical ones often cannot.

But if you don’t, it is a big deal.  Someone has to apply to the Court of Protection to be appointed as your Deputy.

What is a Court of Protection Deputy?

Who can be a deputy

To be a deputy, a person must be over 18 and have good character. They should also be closely connected to the person who lacks capacity, or be a qualified professional. 

What does a deputy do

A deputy is appointed by the Court of Protection to make decisions for someone who can’t make them for themselves. Deputies usually make decisions about finances and property, but the court can also appoint them to make decisions about healthcare and personal care. 

What is a professional deputy?
A professional deputy is a qualified professional appointed by the court to make decisions for someone lacking capacity. The court can appoint a professional deputy for financial matters, who can charge an annual management fee of up to 2.5% of the person’s net assets.  Sometimes, they will appoint a Health and Welfare Deputy, but often, all decisions will need to be individually referred to the Court at further cost.
What are panel deputies
Panel deputies are court-approved professionals who help people who lack mental capacity make decisions about their finances. The Court of Protection chooses panel deputies when no one else is able or willing to act as a deputy or if the Court is unable to determine the best family choice due to disagreements.
How much does the application cost?
The cost to apply for deputyship is likely to exceed £2,000, plus additional costs where a hearing is needed, for supervision and for compulsory insurance.

no obligation chat about wills, powers of atorney, trusts etc

Causes of Loss of Mental Capacity – temporary or permanent.

These are merely examples:

  • Drink
  • Drugs
  • Accident – car, trip, stairs, sport.
  • Mental Health Issues (very common)
  • Dementia
  • Depression – severe
  • Learning Disabilities,
  • Brain Injuries
  • Coma
  • Problems in Surgery

Actual Cases of lost mental capacity.                       The sad case of Betty Figg.                    Legal Planning Checklist & Fees

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