Article from Clare Gannon

Having read the very useful MCO round robbin a few weeks ago on Attendance Allowance, I asked Hayley if they had considered doing a similarly useful article on Lasting Power of Attorneys (LPA). Hayley, ever the canny lass, said it would be really good from a firsthand perspective, so somehow I have ended up doing it…!

What are LPAs?

A Lasting Power of Attorney (LPA) allows your loved ones to take care of you and your finances if you become unable to do so yourself. There are two types. A Property and Financial Affairs LPA which allows your loved ones to deal with paying your bills, buying and selling your property and managing your bank accounts. And a Health and Welfare LPA which covers decisions about health and care and living arrangements and this can only be used if someone is incapable of dealing with such matters themselves.

My experience

I first came across LPAs a few years back when my mother, a widow, was really ill and was in hospital for weeks. It was only afterwards when she was recovering that we agreed that life would have been a lot easier if we had the LPAs in place whilst she was in hospital. I could have paid her bills, sorted out her bank account so I could have access to online banking, and also supported the hospital in any medical decisions. As she was getting older and a bit forgetful and frail, it’s also been useful since for setting her up with grocery deliveries, organising the best utility, insurance and phone deals and being able to pay for any work done on her house like gardening and decorating as most people want payment direct into their bank accounts these days.

I had to go to her bank and present them with the LPA in order for them to issue me with my own bank card for her bank, but it’s proved very useful for both of us – I have a bit more admin to do, but at least my mother isn’t being scammed, she is reassured that everything is being looked after and has peace of mind. The Health LPA came into its own when she was hospitalised again and was unconscious. I gave the hospital a copy of the LPA and they referred any health decisions to me.

More recently, I have been helping a Masham resident with sorting out the consequences of not having an LPA in place for her husband who was in a care home. I learnt that even if you have a house in joint names, you can’t sell it (to pay for care home fees) if you don’t have an LPA in place. You have no power at all in sorting out their finances. The only option open to you is to apply for Guardianship, via the legal courts, which is an absolute nightmare, very time consuming, complicated and very expensive. Lesson learned on that – I’ve sorted my own LPAs out and encouraged everyone I know to get theirs done, I wouldn’t ever want to be in that situation, when things are already stressful enough.

How to set up LPAs

Hopefully, I have convinced you enough to think about sorting this out and you want to know how to do it? Fortunately, it’s quite a simple process with lots of advice and guidance online and it can be done by yourself or ideally with family or friends (or the MCO) helping you if you need online support.

You can make a lasting power of attorney (LPA) online or using paper forms but either way you will need to print it off and get other people to sign the forms, as everyone must sign the same original document. They cannot sign copies or use digital signatures.
The online version is easier and quicker to use as it pre-populates data. You can save the document online as you go, to come back to later if you need to add additional information.
You can get someone else to use the online service or fill in the paper forms for you, for example a family member, friend or ask one of the helpful volunteers at the MCO. You can also use a solicitor or online service provider, but there will be an additional charge for this service and it will be a few hundred pounds, so avoid this is you can.

You must register your LPA (which means post it off and pay the fee) or your attorney will not be able to make decisions for you. It currently costs £92 per LPA (so £184 for both), although if you have an income below £12,000, or get certain benefits, you might qualify for a lower fee, or the fee might be waived altogether. If you’re eligible for a reduction there is (of course!) another form to complete. Payment for LPAs is made either online or by sending a cheque with the completed forms. It takes 8 to 10 weeks for the completed LPA to be returned to you if there are no mistakes in the application.

The most difficult and confusing part of the forms are understanding who is who. Here are the words they use:
• Donor – that’s you
• The attorneys – these are the people you want to undertake your affairs if you are unable to do so, you can have more than one, or replacements.
• Witnesses – anyone (apart from family) who will sign the forms
• A certificate provider – a person who confirms you’re making the LPA by choice and you understand what you’re doing

The other potentially tricky bit is making sure everyone has dated the document in the right order. It tells you how to do this on the forms – just make sure you follow it or it will be returned to you and there is potentially an extra charge. The easiest option is to use one single date for the whole of the document (don’t worry, it’s allowed!)

The final piece of advice – once it comes through the post, keep it in a safe place for when its needed and tell family about it.

Useful Links

Make, register or end a lasting power of attorney – Click here

Citizens Advice – Click here

Citizens Advice MCO Virtual Appointments – Click here

MCO Digital Support Sessions – Click here