Question about LPA with a solicitor

poseidon1

FlorayG said:

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

FlorayG, I feel your pain.

You asked for input from people who have had direct or indirect experience of solicitor costs for administering an LPA once a donor loses capacity to handle their own affairs. So far drawn a blank.

I can't comment specifically on the LPA scenario, but I did professionally come across such a situation under the old Enduring Power of Attorney regime some 17 years ago.

The solicitor in question had an indepth understanding of the donor's circumstances having acted extensively for her ( wealthy ) husband prior to his death. The solicitor's annual fees were high ( over £20k annually) but  commensurate  with the complexity of the asset base and income sources. Costs however  were further compounded since professional accountancy fees also incurred annually to handle yearly tax compliance for the donor ( something the solicitor was not qualified to do).

 Your circumstances, although perhaps more modest, could well involve both a solicitor for day to LPA administration and stepping into your shoes as landlord, as well as an accountant to handle tax compliance and accounting for your rental business. 

However looking at your previous posts on other matters, the question in my mind is whether you have sufficient annual  income to afford to pay professionals to administer an LPA  during your incapacity and cover the direct costs of your long term care if for example you can no longer live in your own home.

I see for example your rental 'profit' on the property is only £260  per month, so unless you have very significant pension income ( over and above state pension),  you may struggle to find any solicitor prepared to commit to accepting the LPA attorney role in your specific circumstances.

Another way to look at it is you mentioned the significant burden you shouldered dealing with your mother's affairs as her Attorney. Imagine you were a legal  professional charging hourly fees  to do the same thing - could your mother have afforded your services?

FlorayG

thank you @poseidon1 this is exactly what concerns me. I hear that solicitors are expensive in these matters and if I need to go into care then the rentals will probably have to be sold to pay for that; I think a solicitor might have quite extensive fees involved what with first having to evict the poor tenants but on the other hand I don't have a relative who could cope and almost all of my friends are already the same age as me.
So I do nothing and hope for the best? Engage a solicitor that will cost me huge sums? I don't know what to do except keep my fingers crossed that I never need it.
I don't care what happens when I am dead, I will be dead and it won't be my problem any longer 

elsien

if you don’t engage your solicitor or someone else to act as  power-of-attorney, and you lose capacity, then at some point a solicitor will end up applying for a deputyship for you through the court of protection which is more onerous  and will have higher costs. 

poseidon1

FlorayG said:

thank you @poseidon1 this is exactly what concerns me. I hear that solicitors are expensive in these matters and if I need to go into care then the rentals will probably have to be sold to pay for that; I think a solicitor might have quite extensive fees involved what with first having to evict the poor tenants but on the other hand I don't have a relative who could cope and almost all of my friends are already the same age as me.
So I do nothing and hope for the best? Engage a solicitor that will cost me huge sums? I don't know what to do except keep my fingers crossed that I never need it.
I don't care what happens when I am dead, I will be dead and it won't be my problem any longer 

Yes I am afraid us singletons do tend to find ourselves  ' between a rock and hard place' in so many different ways when it comes to management of our affairs in the event of long term incapacity.

 Some of us have been able to rely on long term friends, but at a certain age they too may be facing their own challenges.

Hoenir

FlorayG said:

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

At some point in time. May well be worth considering simpfying your affairs. Taking the capital and annuitising part or all for example. This would greatly reduce the costs in employing third parties to admininister in the event you were unable to do so. 

FlorayG

Hoenir said:

FlorayG said:

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

At some point in time. May well be worth considering simpfying your affairs. Taking the capital and annuitising part or all for example. This would greatly reduce the costs in employing third parties to admininister in the event you were unable to do so. 

I fully intend to, but not for some years yet and anything can happen anytime to anybody so I need to sort LPA with things as they are NOW

BikingBud

Hoenir said:

FlorayG said:

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

At some point in time. May well be worth considering simpfying your affairs. Taking the capital and annuitising part or all for example. This would greatly reduce the costs in employing third parties to admininister in the event you were unable to do so. 

Fully agree with this.

Although it will make no difference after death, the assets will be liquidated and passed to whoever you decide, but complexity of releasing funds from illiquid assets to provide you with the best possible care would likely eat significantly into those funds and negatively impact the level of care you receive. 

I feel what you are realising is that what you may aspire to in terms of level of care, costs and longevity, cannot be easily communicated or determined to a 3rd party who might have little personal knowledge of your desires or values.

Providing clear instructions, perhaps identifying the level of care or even pre-selecting the care home you wish to use should enable a forecast of costs and then action can be taken to provide an unfettered and resilient income stream to achieve that, maximising the amount that goes into your care.

In reality you are probably no worse off than those who are unable/unwilling to discuss such topics, long term care and finance, with those they expect to look after them and stumble into what is after all a generally foreseeable event.

Hoenir

FlorayG said:

Hoenir said:

FlorayG said:

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

At some point in time. May well be worth considering simpfying your affairs. Taking the capital and annuitising part or all for example. This would greatly reduce the costs in employing third parties to admininister in the event you were unable to do so. 

I fully intend to, but not for some years yet and anything can happen anytime to anybody so I need to sort LPA with things as they are NOW

Then I'd suggest you consult with solicitors ASAP regarding the appointment of a professional attorney. Discuss the mechanics and the potential cost of such an arrangement. I'd be fearfull that the cost would be prohibitive in relation to the potential benefits. Hourly charge rates for solicitors run in the hundreds of pounds. 

FlorayG

I'm not actually getting answers to my original question...

elsien

I don't think it's entirely accurate to say that you have had no answers. 

The link I posted covers how the fee structure would work, I don't think it could be much clearer that that because obviously rates will vary across the country.  It covers that your wishes and views should be carefully documented when the LPA is created and this needs more consideration from a professional LPA because of the concern you have raised that they don't know you.  That would allow you to discuss the balance of making the most of your money vs what you would want to happen - best interests is not purely about managing your money for maximum profit, it is about the choices you make/would make while you have capacity  and is the basis of the Mental Capacity Act. 

With the indirect contact that I have, the solicitor does go out to visit the person and try to explain to them any big decisions and see what views they are still able to give before making the decision on their behalf. 
Not really sure what else you want to know. Except that when asking questions about how many LPAs they manage would probably be helpful to make sure that they do have the time to think about and carry out your wishes properly.