Loss of mental capacity - managing your affairs
It is a harsh fact of life that an increasing number of people lose their mental capabilities as they get older and recent estimates suggest that 1 in 3 people are likely to suffer from some form of dementia. It doesn’t just happen in old age either, particularly if a younger person is involved in an accident. So who will look after your affairs if you cannot?
If you do nothing, a relative, friend or professional has to make an application to the Court of Protection for somebody to be appointed as a Deputy to manage your affairs. It is a slow, cumbersome and, above all, expensive exercise. You can, however, avoid such a risk by making a Lasting Power of Attorney now. A Power of Attorney is a written document, which gives somebody else authority to act on your behalf. A Lasting Power of Attorney is a special Power because it is a Power that continues even if somebody has lost mental capacity.
There are two types of LPA, the Property and Affairs LPA and the Personal Welfare LPA. As the name suggests, a Property and Affairs LPA is concerned with the management of assets whereas a Personal Welfare LPA gives others authority to direct what treatment you should be given in certain circumstances, how you should be looked after and the like.
You can choose one or more Attorneys to act on your behalf, be they relatives, friends or professionals, and you can give them authority so that they can act either individually or jointly. Most usually, people give their Attorneys general power to act in all matters but, again, you can restrict what they can and cannot do. Broadly, you can create the structure that you wish. You can choose when the Power starts to be effective: for instance it could be immediately or, alternatively, it may never be operative unless you were to lose mental capacity.
LPAs are quite straight forward documents for your solicitors to prepare. They are an easy and quite inexpensive way of avoiding a potentially troublesome and very costly matter so, if you have not prepared yours yet, see a solicitor soon.
Richard Watson
Sharon Richardson
Jennifer Bartram
Darren Norgate
Belinda Poulter
Related Documents
- My Documents - File to save to your computer and complete (467kb)
THIS DOCUMENT IS IMPORTANT INFORMATION TO COMPLETE AND KEEP SAFE When a close family member or friend loses capacity or dies it is a traumatic time for the people left to make the necessary arrangements. It can be made more difficult for those relatives or friends who have been asked to deal with the persons affairs or administer their estate, particularly if they have to go through extensive paperwork to find key information and documentation about the assets belonging to the incapacitated person or the deceased. It is therefore very useful if documentation such as the Will, Power of Attorney, share certificates and life assurance policies as well as information about bank accounts and other assets are easily accessible shortly after the incapacity or death. By completing our My Documents form, you can list what you own and where it is kept for easy reference. - Crombie Wilkinson Lasting Powers of Attorney Information (87.04kb)
Have you ever considered how you would manage if you became incapable of managing your finances, either because you were physically incapable of going to the bank or signing cheques or if you were mentally incapable? Have you also considered whether you would like someone else to make decisions about where you live or what medical treatment you should receive in the event that you cannot make such decisions yourself due to mental incapacity?
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