P owers of attorney ... a - PowerPoint Presentation

Slide1

Powers of attorney

... a

plan to make it easier

Slide2

It wasn’t meant to be like that ….butNever had time …..too busy

Never had any spare money

A

nd anyway

‘It will be all right in the end…’

‘They will sort it out …’

‘They all know what I would have wanted’

Slide3

Your choice .. Joint or Joint & Several

Joint

- MUST

always act together; agree all decisions and both sign all and any documents – may cause

delays

Joint

&

Several -CAN act

together

or on

their

own

Mix and match –so on some decisions act jointly such as selling property and

for others

act

individually

 

If one attorney has certain skills i.e. a financial adviser may be give them individual power on investments with requirement to keep the other attorney informed

 

Slide4

Attorneys must act in accordance with Mental Capacity Act

in

your best interests

take into account your past and present wishes

cannot take advantage to benefit themselves

must keep your money separate from their own

The

OPG

can investigate any breach or failure to comply or breach –- and can prosecute

Slide5

Never had time…..to prepare for the unexpected

Slide6

The professor was right …….time is relative

But not elastic

E=mc2

Slide7

Getting older brings……Loss of earnings and capacity

Personal and nursing care

Need for suitable housing and facilities

While you are having fun

Slide8

Your Legacy?Losing

mental capacity or

physical frailty/ needs

Asset rich income poor

N

o insurance for care home fees

No

attorney/

No valid Will

D

ependents/ Contested claims

Slide9

Solutions -A

Will that works

–

Avoid intestacy

Appoint LPA attorneys

Consider

care home

fees and use of trusts fixed or discretionary - equity release. Who

is a partner in your

property?

Attorneys/executors agree to act and know what you want

Review and keep up to date for changes - tax, law, family circumstances

Slide10

Powers of Attorney - lots to choose from

LPA or EPA or annual

LPA - finance or welfare or both

Trusted people to look after your wishes

Plan for care costs

Property trust

Lifetime gifts

Will you need the Court of Protection?

Slide11

What is attorney?  The

appointment in a written document of a person who is authorised to carry out actions and make decisions on behalf of another person – Donor.

This might be in connection with, for example,

assets where owner is unable

to do so

for

any

reason

 

 

Slide12

S10 General PowerThis is a simple short from prepared under the Powers of Attorney Act 1971 and expires on revocation or death.

After

12 months it may need to be verified before use. It can sets out powers and limitations and is not

registrable

It can be limited and revoked

Slide13

EPA - remains valid if made before October 2007

It gives

power to

buy

and sell property, deal with financial affairs, sign documents but

only covers financial matters

Not to make decisions about personal care and

welfare

 

Attorney can act

once

signed

and before being registered with

OPG

 

Registration

required

only if and when the donor lost mental

capacity

Slide14

LPA - Health and Welfare

The

Attorney can only make decisions once you lose

capacity

The

attorney can make decisions on donor’s behalf about personal health including if power enables this to give instructions to doctors not to intervene in a critical medical

situation.

 

Slide15

LPA - Financial and Property This allows attorney to look after finances such as signing cheques; making investments; paying bills, selling

property

The

attorney can act while you have capacity and you can still make decisions and before the power is

registered

Slide16

LPA - post EPA for H&W If you have an existing EPA you could make a Health and Welfare LPA to operate alongside EPA.

LPA

needs a certificate to

say you have mental capacity and are choosing your attorney of your own free

will

Slide17

Certificate with 3 Safeguards The

Certificate can be given by your doctor, solicitor or someone who has known you for at least 2

years

 

and

t

he

chosen Attorney(s) must agree to act and

sign

LPA

H&W

must be registered before it can be

used - Designated

people must be notified  

Whilst you have mental capacity you can

cancel

Slide18

Who to Appoint? ……the skills and qualities needed

Someone

who knows you and can know what you would want and act in your best

interests. Age

– what if an attorney predeceases you or loses capacity themselves

?

Not

necessary to appoint same attorneys for both types of

LPA

A

replacement attorney can be appointed

Must be over 18 and bankrupts are excluded from being a financial

attorney

Slide19

Serious responsibility ...

Being

an attorney for a family member or friend could mean making difficult decisions about that person's finances, health and welfare.

You

may have to make those decisions alone or with other appointed

attorneys –and always in the best interest of the Donor.

You

should think carefully about whether you are willing and able to make those decisions if the need

arises.

 

Slide20

Where is it?

Make sure the family know there is LPA and W

i

ll and where stored

Access to

online accounts?

Place a copy with other financial documents

–

tax return

Slide21

Ways to plan during lifetime

Financial Matters

In relation to

later

years or unexpected events.

C

onsider

and

take

advice upon placing property and other financial

assets into:

Trusts

Joint names or

Using lifetime

gifts

These are also relevant to planning for Inheritance Tax.

Slide22

Planning to avoid uncertainty ……. for your Executors and

family

Planning in relation to the use of:

Trusts

Pensions

Insurance policies

to reduce

the impact of tax and what

remains to be included

within your

Estate

to be administered by your Executors under your Will.

Slide23

The family home ….financing the cost of care

An

overriding issue at the heart of much

concern

If

the family home

is

owned

- not rented -

who can live there apart from the owner and will it have to be sold?

The

cost of care is

high

and

government

contribution is limited.

Slide24

Nursing and Care home feesThe NHS will fund the health element but only where it is assessed to qualify for nursing care

The NHS is responsible for ‘health’ and assesses mobility, and ability to preform daily

tasks

In

many cases sufferers from

dementia

do not qualify because apart from aspects of mental capacity the person is deemed to be ‘

healthy

Slide25

Plan before the situation arises…..

Where

the Local Authority provide care home or home care this will be limited by means testing of both capital and income.

It

is reported that 10,000- 20,000 homes were sold last year to pay for care home fees

.

Slide26

Protect your legacy

Attorneys that manage

Health & Welfare and Financial Matters

Effective Gifts, Trusts and Will

Accessible information and documents and

I

nformation

for executors

Slide27

A plan that works

Slide28

Office of the Public Guardian ….. Birmingham

Deals with objections

Maintains

register of LPA’s

Deals

with issues and complaints about exercise of powers

Can

pass

issue

to Court of Protection

Slide29

Court of Protection …..Holborn

jurisdiction

to make decisions

for

people who lack mental capacity so cannot make decisions themselves at a time when they need to be

made

 

Slide30

For Decision by Courtappointment of Deputies to make ongoing decisions for those who lack mental capacity

permission for one-off decisions on behalf of someone who lacks mental capacity

handling urgent applications

making decisions about LPA’s / EPA’s and any objections to their registration

removal of attorneys

decisions

about deprivation of liberty under the Mental Capacity

Act 2005