Spotlight on…So who do you want looking after all of your money?!
There are occasions when nearly all of us may need some help in managing our cash, investments and other property. It is wise to plan ahead for that possibility and the law allows you to do so by making what is known as a Lasting Power of Attorney (regarding property and financial affairs).
This "LPA" as it is known can be enormously flexible. The major benefit however is that you can chose your own Attorneys. These may typically be family members or friends but, whoever it is, they will need to be dependable and above all trustworthy. Not infrequently clients of ours choose to appoint partners of MCP as their Attorneys and in appropriate cases we are happy to take on that role.
So what happens when a person becomes unwell, is unable to manage their finances and there is no LPA in place? The answer is that there is another system in place, known as Deputyship. There are however many drawbacks associated with Deputyship; the associated delays and expense are the first issues which come to mind.
However, a far greater concern for many is that by the stage of a Deputyship Order being required, you may no longer have any real say at all as to who should be appointed Deputy to manage your financial affairs. While it might on the one hand be a spouse or another close family member, at the other extreme it could be someone completely inappropriate and/or objectionable to you.
The Court of Protection will have the final say but any Judge considering the application papers cannot necessarily be expected to have a full and detailed knowledge of past family history.
Where a Judge faces a dilemma as to who to appoint as Deputy then, if a case is difficult or if there are clearly conflicts within the family, a Judge may elect to appoint what is known as a Panel Deputy. There are approximately 70 or so professional people (in the main Solicitors) on this Panel, including Simon Scott of MCP. It rarely represents a perfect solution, however, because the person for whom the Deputy needs to be appointed would rarely if ever have had any knowledge of the Panel Deputy. How many of us would really want a complete stranger, albeit an experienced and professional person, having the say over all of our financial affairs?
The solution in all of this is therefore to consider making an LPA relating to property and financial affairs, giving careful thought as to whom exactly might be appointed as Attorney. It is possible to appoint a number of Attorneys as well as a replacement Attorney if those chosen initially are or become unable to act. Very usefully the LPA also gives options to set out restrictions and limitations on what the Attorney can do and also the opportunity to set out guidance. Incidentally, there is a separate LPA available which deals with issues of health and personal welfare where similar considerations apply.
MCP's experts will be very happy to give guidance and to discuss the likely cost of making an LPA (of whichever type). It is usually advisable to not only make the LPA but at the same time register its existence with what is known as the Office of the Public Guardian so that if the need to use the LPA should arise, use of it can commence right away and without difficulty.
For more information please contact:-
King's Lynn office (01553 778100): Simon Scott (simon.scott@mcp-law.co.uk), Margaret Taylor (margaret.taylor@mcp-law.co.uk) and/or James Davies (james.davies@mcp-law.co.uk)
Wisbech office (01945 464331): Sophie Putterill (sophie.putterill@mcp-law.co.uk) and/or Paul Garner (paul.garner@mcp-law.co.uk)
Peterborough office (01733 865880): Baljit Bem (baljit.bem@mcp-law.co.uk) and/or James Davies (james.davies@mcp-law.co.uk)
Thetford office (01842 756100): Priscilla Ivory (priscilla.ivory@mcp-law.co.uk) and/or Paul Hendriks (paul.hendriks@mcp-law.co.uk)