Donnelly & Elliott has assisted many families in planning for their future. In the 70 years we have been supporting the families of Gosport, we have noticed that there are a number of common misconceptions that demonstrate how misunderstood Lasting Powers of Attorney (LPA) are.
Here are some of the most common misconceptions…
A family member can be a signatory on your bank account. However you will need to set this up for each account that you hold, or that you need them to have access to. This is also only relevant while you have the capacity, as soon as you lose capacity you are no longer able to authorise your signatory.
If the bank has concerns about your ability to manage your affairs, this facility will stop and your accounts will be frozen. Your accounts will only be unfrozen when you are able to present a doctor’s report confirming that your capacity is not compromised or an LPA or Deputyship order. The bank will grant access to all accounts if they receive a valid Lasting Power of Attorney or Deputyship order.
A Deputyship order is issued by the Court if an LPA hasn’t been made, they take longer to process and are more expensive than an LPA. With a deputyship order there is an on-going commitment to the court to report annually, the Court also insist that there needs to be an indemnity bond in place. This is another on-going expense as you also have to pay an annual administration fee to the court.
If you lose capacity, you also lose the ability to consent to the joint owner using that account. If your bank becomes aware of your lack of capacity they will freeze the joint account as above, again cutting of access to your family when they need it most.
Unfortunately, it doesn’t work that way. As soon as you start to lose capacity it is too late for you to write an LPA. The best time to write an LPA is now.
We are often approached by families that ask for help once their loved one has already started to struggle or can no longer manage.
There is no obligation for you to appoint a family member as your Attorney; you can appoint any adult that you trust.
If you have no family or close friends to appoint, you may want to consider appointing a professional of your choosing. If you do not make a choice and later lose capacity, the Court will make this decision for you. This could result in the Court appointing someone you would not wish to know about your financial/personal affairs.
Writing a Lasting Power of Attorney enables you to choose who deals with your financial and/or health decisions. In the absence of a Lasting Power of Attorney a local authority, a Court appointed Solicitor or Social Services could be appointed.
A Will sets out how your finances and estate will be managed after your death. An LPA covers decisions about your financial and/or health during your life. If you are planning for the future, you should consider both Lasting Powers of Attorney and Wills.
Don’t leave your family without the ability to help you when you and they need it most.
If you have any additional questions on Lasting Powers of Attorney or would like to find out more, please contact us on 02392 505500 or email email@example.com
|cookielawinfo-checkbox-advertisement||1 year||Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .|
|cookielawinfo-checkbox-analytics||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".|
|cookielawinfo-checkbox-functional||11 months||The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".|
|cookielawinfo-checkbox-necessary||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".|
|cookielawinfo-checkbox-others||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.|
|cookielawinfo-checkbox-performance||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".|
|_ga||2 years||The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.|
|_ga_X54Z5K1MMY||2 years||This cookie is installed by Google Analytics.|
|_gat_gtag_UA_162537196_1||1 minute||Set by Google to distinguish users.|
|_gid||1 day||Installed by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.|
|_fbp||3 months||This cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.|
|fr||3 months||Facebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.|