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Lasting Powers of Attorney
Tue 12 Jul 2011
Who will look after you when you get old or infirm?
The State? Your friends? Your relations?
While you are fit and healthy, please consider the need for a lasting power of attorney.
Firstly, what are they: You appoint someone to look after your Property and Financial Affairs or your Health and Welfare (where you live or day to day care) if you become incapacitated. For details see www.publicguardian.gov.uk/ . This site will forward you to the www.direct.gov.uk site (or you can go direct at http://goo.gl/oHSxP )
Why do I need a Lasting Power of Attorney? Average Life Expectancy is increasing and for someone of 65 is now more than 21 years (ie 86).
Thats bad news? No but a recent study (2007) indicated that by
Age 80, about 1 in 8 suffer dementia.
Age 85, about 1 in 5 suffer dementia.
And of course dementia is only one form of mental incapacity.
So? If you are mentally incapacitated, someone needs to look after you and your major decisions; there are three options available
1. Register a Lasting Power of Attorney in which you specify who can take decisions for you. (If the document cannot be registered then it cannot be used. One reason to register the document early.)
2. Your family or friends can apply for authority from the Courts to look after you.
3. Rely on the State.
How much does it cost and how do I go about it: Ring the Office of the Public Guardian (tel 0300 456 0300) and ask for the forms. They also provide guidance both on the telephone and on the website. Total registration fee is only £240. Or ask your adviser.
Once completed then what? Keep the documents safe: you need the originals. (Make sure you ask for two office copies : these are equally valid and don't cost anything.)
What else should I consider? Costs of Residential Home care, Wills and inheritance tax (NB You cannot normally make gifts using a power of attorney)
What about Enduring Powers of Attorney? If properly executed, existing ones from before 2007 are still valid. They need registration before they can be used and only cover Property and Finance.
What about General Powers of Attorney: Great for temporary absences, but for mental incapacity, invalid.
Henry Bremridge CFA, DipPFS, TNW Financial Services 01626 366995.
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