Question about LPA with a solicitor

FlorayG

I don't have any relatives that I would burden with the problem of a LPA if it ever comes to it ( I have rental properties to complicate matters) but I really do need to set one up now I'm older and living alone and I think my only recourse is to use my solicitor
Please does anyone have actual experience of this (maybe with a friend or relative that did this?) because some people are telling me a solicitor charges a lot of money to do anything once the LPA comes into effect; also, how will my solicitor know what is 'in my best interest' when he doesn't know me other than professionally? Does he keep entirely to maximum financial benefit and not able to take into account what I would have wanted?
I'm worrying about this because I had LPA for my mother and it was a lot of work and sometimes I did what I knew she would have morally wanted with her finances ( I was lucky, she never lost capacity, just didn't want the hassle in her 90's of dealing with her own affairs, so was able to tell me)

Keep_pedalling

The rules around what an attorney can do on a financial LPA are quite strict so what you might want might not be allowable, such as making large gifts once you have lost mental capacity. This applies whether your attorney is a lay one or a professional. The best you can do can do is document your wishes for them once you have discussed what is and what is not allowable.

Yes it will be expensive once they actually have to start looking after your affairs, especially as they will have a rental business to look after, but as you don’t seem to have any close relatives to leave your estate to does this really matter?

elsien

They do make ongoing charges once the LPA kicks in. That would be a discussion to have at the time of making the LPA and appointing a solicitor.

There is a good practice guide for professionals acting as financial power of attorney, which might answer some of your questions.

https://assets.publishing.service.gov.uk/media/5a820e0eed915d74e62358a7/Agreeing-to-act-as-a-professional-attorney-practice-note-PN1.pdf

As with anything, my experience although not directly involved is that some are better than others. And check you are using a proper solicitor - that may sound obvious but there was a recent documentary on radio four with someone who was acting as power of attorney wasn’t actually qualified and was abusing their position. 

https://www.bbc.co.uk/programmes/m0025vhg

This is a minority but it does evidence really trying to check out who you choose. 

FlorayG

Keep_pedalling said:

Yes it will be expensive once they actually have to start looking after your affairs, especially as they will have a rental business to look after, but as you don’t seem to have any close relatives to leave your estate to does this really matter?

I'm more worried about the costs while I am alive actually

Keep_pedalling

FlorayG said:

Keep_pedalling said:

Yes it will be expensive once they actually have to start looking after your affairs, especially as they will have a rental business to look after, but as you don’t seem to have any close relatives to leave your estate to does this really matter?

I'm more worried about the costs while I am alive actually

They will be no costs when you are dead, the LPA ends at that point. The idea of an LPA is that it allows someone to act for you when you no longer have the ability to do so yourself, so why would there be any large costs before then?  

FlorayG

I don't understand these answers. Do people mean that the solicitor takes no payment until I die and then takes a lump sum to cover the costs they have accrued? Seems weird, what if I live 20 years in a vegetative state?
Anyway, I'm asking for experience from people who know others who HAVE DONE THIS and how it went, please

FlorayG

Keep_pedalling said:

FlorayG said:

Keep_pedalling said:

Yes it will be expensive once they actually have to start looking after your affairs, especially as they will have a rental business to look after, but as you don’t seem to have any close relatives to leave your estate to does this really matter?

I'm more worried about the costs while I am alive actually

 so why would there be any large costs before then?  

Because professionals charge for their time

elsien

There may be charges before you lose capacity if you have it set up so that they can help you while you still have your marbles. That may apply where perhaps you become disabled and can’t physically get out to the bank or anything else you need to do.

There will be an initial fee for setting it up and then there will be an hourly rate for anything else that needs doing thereafter. no lump sums, just charging for whatever they do. Which they will bill your account to as they go along. So they get payment throughout the time they are using the power of attorney in exactly the same way as any solicitor would bill you for work that they do or while you have capacity. 

And if you read the guidance I posted it says they have to try and mitigate their costs. 

so one solicitor I am aware of employs someone to do the day-to-day admin such as sending money to people, purchasing anything that is necessary, et cetera and their role is limited to the decision-making unless something bigger crops up.

Keep_pedalling

FlorayG said:

Keep_pedalling said:

FlorayG said:

Keep_pedalling said:

Yes it will be expensive once they actually have to start looking after your affairs, especially as they will have a rental business to look after, but as you don’t seem to have any close relatives to leave your estate to does this really matter?

I'm more worried about the costs while I am alive actually

 so why would there be any large costs before then?  

Because professionals charge for their time

Once the LPA is registered with the OPG they won’t be spending any time acting for you until you don’t the ability to do so yourself, which could be many years away. They may make a small annual charge, but won’t be billing hourly until they have some work to do. 

FlorayG

Keep_pedalling said:

FlorayG said:

Keep_pedalling said:

FlorayG said:

Keep_pedalling said:

Yes it will be expensive once they actually have to start looking after your affairs, especially as they will have a rental business to look after, but as you don’t seem to have any close relatives to leave your estate to does this really matter?

I'm more worried about the costs while I am alive actually

 so why would there be any large costs before then?  

Because professionals charge for their time

Once the LPA is registered with the OPG they won’t be spending any time acting for you until you don’t the ability to do so yourself, which could be many years away. They may make a small annual charge, but won’t be billing hourly until they have some work to do. 

Yes I'm clearly aware of this. I can't understand what you are trying to convey. Once they start to act, there will be costs

badmemory

Have you looked at the LPA paperwork.  You can either go for the - do what you think is right - version which would be the sort of thing you would do if someone you knew well was your attorney, or the - this is how I want things to be - version, which can define just what you want done.