Living power of attorney

lacy2nd · 26 November 2016 at 10:54AM

Morning...i am new to this site and may be placing this in totally the wrong area so i apologise if i am.
My husband and myself are making our will and been advised by our solicitor to take out a LPA, this is rather expensive and i had not considered doing this......can anyone advise me as to whether these days it is a good or bad thing to do, i understand the principle behind having one but my daughters can go and manage mh accounts on line or draw money from my bank without ever speaking to anyone as long as they know my passwords etc which if needed in the future i would let them have?
I would like some advise if possible as to whether it is considered to be advisable to have or not.
Thank you for any help advice i can be given.

robber2 · 26 November 2016 at 11:20AM

It would be a very good idea as this allows your attorney to not only deal formally on your behalf with your bank but also others such as mortgage, local council, DWP, HMRC, Private pensions. I speak from current experience having two elderley in laws. I cannot imagine how we would manage their affairs without LPAs being in place.

You can make the process much cheaper by avoiding using a fee creating solicitor. All the information you need to DIY is here; https://www.gov.uk/power-of-attorney/overview

Giving your passwords or PIN to your daughter is against your banks Ts&Cs and could land you in a whole heap of trouble, it will also not help when you need a cheque signing or a letter writing to the bank unless you plan to have your daughter forging your signature.

RADDERS · 26 November 2016 at 12:24PM

I have just received back our registered wealth lasting power of attorneys. It was actually very easy I just followed the instructions on the government web site, got the forms signed and then sent off.
Took about six weeks from start to finish total cost was £110 for each one.

Johnhowell · 26 November 2016 at 1:18PM

Lacy,

It is the Lasting Power of Attorney not Living...
It is advisable to have this sort of document to cover the potential situation where your and your husband become mentally incapable of looking after yourselves. It has two parts - medical wishes and financial. Your attorney does not get access to your estate until the LPA is empowered by the Court of Protection and will be based on medical confirmation of your condition. Your attorney can only use your estate for your needs and costs.

As been mentioned above it is a fairly simply process and is registered in advance of its need. Unlike the old Enduring Power of Attorney.
I would recommend naming two attorneys (joint and several status) - family members or good friends - NOT a solicitor. Similar to Executors to a Will - solicitors can charge your estate for their costs. Your Executors and Attorneys could engage solicitor for specific issues as and when required - which can be charged to the estate.

Your understanding is not quite correct. If and when your LPA becomes empowered your attorneys will have the power to gain access to your accounts. They do not need your passwords. Just knowledge of what accounts you have with which banks, etc. Although, I understand banks, etc. can be resistant and awkward at times as these. Some staff in branches or on the telephone may not understand the legal status of Attorneys and what "joint and several" status means.

Good luck,
John

lacy2nd · 26 November 2016 at 2:54PM

Thank you, the solicitor we met with suggested this and we have sort of agreed to having 4 ie myself and my husband who would be responsible for the other should it be required and my two daughters who would then be in the position should either it be only myself or my husband alive so they could then do what was necessary.
I questioned the necessity to have it due to the fact that i have a friend who lives with and cares for her bed bound mother who is not in aposition to monitor her affairs verbally or in writing and my friend does not appear to have had and issues with carrying out her mothers affairs, we are good friends and i know a lot about her and her family but I guess there still could be things and issues she has not informed me about but on the surface she seems to do just fine.
Having read these replies however i am leaning more to the side that it would be more beneficial than not.
I appreciate all replies thank you.

Mojisola · 26 November 2016 at 2:58PM

Lacy2nd wrote: »

Thank you, the solicitor we met with suggested this and we have sort of agreed to having 4 ie myself and my husband who would be responsible for the other should it be required and my two daughters who would then be in the position should either it be only myself or my husband alive so they could then do what was necessary.

Do you mean that your daughters are attorneys for you both as well as the spouse?

Johnhowell · 26 November 2016 at 4:23PM

Lacy2nd wrote: »

I questioned the necessity to have it due to the fact that i have a friend who lives with and cares for her bed bound mother who is not in aposition to monitor her affairs verbally or in writing and my friend does not appear to have had and issues with carrying out her mothers affairs, we are good friends and i know a lot about her and her family but I guess there still could be things and issues she has not informed me about but on the surface she seems to do just fine.

For your friends position - she may not have had any issues so far... but it could become a big issue later. If the mother is not mental capable to have a LPA written now, or even for the daughter to become joint account holder, then sadly the Court of Protection (CoP) is the only body that can initiate the creation of attorneyship. May be ask the visiting nurse their opinion on the mothers capacity - I suggest the least action is become joint account holder. My late father did this with my sister before he became too ill. Obviously, being joint account holder means the account is just as much the daughter's account as it is the mothers!

The CoP (or, I think, sometimes called the Guardianship Agency) will be the Attorney but allocate the actions to either a family member or even a local authority. The issue with is, they charge the estate an annual fee - which used to be "reasonable" few hundreds of pounds but I understand may be into the 1000s! And, the family member can not do anything until instructed by CoP.

John

AnotherJoe · 26 November 2016 at 4:27PM

Lacy2nd wrote: »

Thank you, the solicitor we met with suggested this and we have sort of agreed to having 4 ie myself and my husband who would be responsible for the other should it be required and my two daughters who would then be in the position should either it be only myself or my husband alive so they could then do what was necessary.
I questioned the necessity to have it due to the fact that i have a friend who lives with and cares for her bed bound mother who is not in a position to monitor her affairs verbally or in writing and my friend does not appear to have had any issues with carrying out her mothers affairs, we are good friends and i know a lot about her and her family but I guess there still could be things and issues she has not informed me about but on the surface she seems to do just fine.
Having read these replies however i am leaning more to the side that it would be more beneficial than not.
I appreciate all replies thank you.

Probably the banks, utilities etc are unaware of whats going on.

In these days of online everything, plus phone service, so no need to visit branches in person, its very likely that for everything she's needed so far the fact its someone else doing the transactions is hidden.

However, suppose her mother goes into hospital or care home? At that point its very difficult or impossible to keep up the pretense. If care home needs something signing, they may not accept her signature and may have to take a default position about finances / medical decisions.

Mea Culpa, I need to get off my butt and organize mine and Mrs AnotherJoe's LPA's.

Johnhowell · 26 November 2016 at 4:28PM

Lacy2nd wrote: »

Thank you, the solicitor we met with suggested this and we have sort of agreed to having 4 ie myself and my husband who would be responsible for the other should it be required and my two daughters who would then be in the position should either it be only myself or my husband alive so they could then do what was necessary.

As Mojisola asks, I hope the fourth attorney hinted at is NOT the solicitor.

System · 26 November 2016 at 6:19PM

My wife and I are part way through creating LPAs online, but are stuck on the stage of nominating a Certificate Provider. This has to be someone who has known us for at least two years, not related or the attorney, but having appropriate professional skills.
Who do people normally use?

I had been about to raise another question before the OP posted this thread, which is does the attorney have full power to make and manage investments, and to make gifts to children etc, ie do things exactly as the person concerned would have if still competent?

I presume an attorney is unlikely to have the power to make or alter a will, for example. But supposing a couple have made mirror wills reflecting current taxation rules, and then there is a change and they are recommended to make appropriate alterations, eg to inheritance or property ownership - can an attorney do that on behalf of the one who has lost competence?

elsien · 26 November 2016 at 6:36PM

Power of attorney doesn't allow for wills to be altered. And the attorney needs to act in the best interests of the person at all times - so altering inheritances and giving generous gifts to benefit other people (for example) would not be allowed.

Living power of attorney

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