Power of Attorney – why are they important?

Important of Power Attorney 

A Power of Attorney nominates someone to act on your behalf should you lose mental capacity, as defined by the Mental Health Act 2005. Mental incapacity could be dementia or other mental health issues brought on by illness or even an accident. Importantly they are put in place BEFORE you lose capacity. Only if you are unable to make decisions for yourself does the Attorney(s) you chose to act on your behalf. Typically the Attorney is either a spouse or child.

So why are they important to get set up now?

There are a number of reasons I advise all my clients to have Lasting Power of Attorney (LPA) in place, not least peace of mind, but importantly because the alternative to an LPA is much more expensive and time-consuming.

If you no longer have the capacity to make an LPA your spouse/ children have to apply to the Court of Protection for a Deputyship Order. This is a complex process with a number of potential pitfalls. It also costs significantly more and can take 28 weeks to put in place.

Here is a summary of the differences:

 

Lasting Power of Attorney

Deputyship Order

Has Capacity?

YES

NO

MW Estate Planning fee

£200+vat

£750+vat

Registration Fee

£82 per LPA

 (means-tested)

£400 pa

(means-tested)

Doctors Certificate (typical)

N/A

£90 - £150

Security Bond (typical)

N/A

£150 - £250

Courts Fees (if disputed)

N/A

£300 - £2000

Total Cost (typical)

£322

£1940 - £4600

Application Time (typical)

8 -10 weeks

28-45 weeks

 As you can see the costs for a Deputyship Oder are in the order of 3-4 times as much. As well to the coast there is a delay in getting the Deputyship Order in place, and all this time you won’t be able to administer someone’s finances.

In conclusion, my strong recommendation is to get a Lasting Power of Attorney in place now and save time, money and hassle for your loved ones.

For more information or to arrange a FREE consultation contact Matthew Wildeman STEP Aff. MSWW

T: 01202 022 841

E: info@mwestateplanning.co.uk   

W: www.mwestateplanning.co.uk

MW Estate Planning is a member of The Society of Will Writer and comply to their strict Code of Practice.
Location: 81 Bournemouth Rd, Poole BH14 0ER, UK

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