No one likes to think of a time when they are unable to look after their own finances and well-being, however, this may become a reality.
When someone becomes unable to make decisions for themselves, a family member or a friend can apply to the Court of Protection for a Deputyship Order. The Court will then appoint a suitable DeputyÂ to act on their behalf.
The process of applying for a Deputyship Order is time consuming and expensive. This may cause problems if decisions need to be made and effected quickly.
On appointment, there are on-going supervision fees, insurance and annual report submissions.
A way of avoiding this process is to make lasting powers of attorney (LPAs). Attorneys appointed under an LPA do not have submit annual reports for assessment although keeping records is advisable. No general on-going fees would be payable in the general administration of your affairs.
Making LPAs means you are able to choose and authorise exactly who you would like to act on your behalf.
This could save your relatives or friends the worry and potential disagreements on deciding who should apply to be a Deputy.
There are two types of LPA. One deals with property and financial affairs and the other deals with health and welfare. The costs of creating and registering LPAs with the Office of the Public Guardian through Warners Law LLP start from £650 plus VAT. In addition, there is a Court fee of £110 per document.
While creating LPAs may seem costly now, it is a cheaper alternative in the long term by avoiding the initial and on-going costs that are part and parcel of the Deputyship Order process.