Our News
Simpler Forms Should Boost Powers of Attorney- 23/09/2009
The introduction of simpler documentation is expected to lead to a much needed uptake in the numbers of powers of attorney, according to a leading Midlands’ lawyer specialising in wills, trusts and estate planning.
Andrew Vernon, Partner and Head of Wills Trusts and Estate Planning at West Midlands’ law firm FBC Manby Bowdler, says that the simplification of the form for Lasting Powers of Attorney (LPA), to be introduced on 1 October 2009, should boost the numbers completing an LPA, as many people have been put off previously by the complexity of the applications process.
“The reduction in the size of the form, from 25 pages to only 11 pages, is a welcome change, as over the past two years, since the LPA replaced the Enduring Powers of Attorney (EPA), we have seen a dramatic reduction in people taking up powers of attorney. This means that thousands of people are still leaving it too late to choose who they would like to look after their affairs, should they become incapacitated,” says Mr Vernon, who is based in FBC Manby Bowdler’s Wolverhampton office.
“People who do not have a power of attorney document when they become incapacitated, have no say in who deals with their property and finances, and no opportunity to express any personal wishes about the use of their finances, or about their medical treatment and it is left to the Court to decide.”
Mr Vernon continues: “Having the Court of Protection appoint a Deputy, can also be a very expensive and time consuming process. The costs are borne by the individual, reducing the amount of money left for relatives and the delays are likely to extend to several months.”
According to Mr Vernon, when the LPA was introduced two years ago (1 October 2007), it offered greater safeguards and flexibility than the EPA which it replaced, but increased cost and complexity of the process.
“We have had some clients who have just abandoned an LPA because of the length of the forms which have to be filled in. The newer simpler version of the forms, available from 1 October, will not be nearly so daunting.”
There are two types of LPAs – one for Property and Affairs and one for Personal Welfare. They are made and registered completely separately and so a person can have either type of LPA or both.
A Property and Affairs LPA allows an appointed attorney to handle the donor’s finances and deal with their possessions. The attorney can make any decision about the donor’s property and affairs that the donor could, unless the donor has restricted the attorney’s powers.
A Personal Welfare LPA allows the attorney to make decisions about the donor’s welfare, e.g., where the donor lives and with whom, what the donor eats and how they spend their day and to accept or refuse medical treatment for the donor. The attorney can also have access to the donor’s medical records. A decision about life-sustaining treatment can also be made, but only if the LPA expressly states that.
Mr Vernon says: “As part of our wealth management and estate planning advice, we advise all our clients to consider an LPA, so that they can exercise their personal wishes over who takes care of their affairs, rather than have a court choose for them and thanks to the simpler forms, we believe that more will now take up this advice.”