WHAT WE DON’T WANT TO THINK ABOUT

Death and incapacity are not popular subjects to think about or discuss but it is only right to consider how others close to you might be affected by your death or incapacity. Many have not written a will and the vast majority of people have not considered the effects of not setting up a Lasting Power of Attorney (LPA) in case one is still living but not able to make decisions on matters regarding their health or finances.

A recent case outlined by a firm of solicitors concerned a family with husband and wife in their mid-70s with two children and 3 grandchildren. They had written their wills but despite the recommendations of their financial adviser, they had not taken out an LPA. The husband suffered a sudden and unexpected stroke which left him effectively unable to make decisions. As many of his financial matters were in his sole name including his pension and investments, his wife could not take action to deal with his and the family’s needs. Even the financial adviser was not able to act on her behalf in respect of the husband’s financial matters as her husband had not given him authority to do so before he suffered the stroke.

They had to apply to what is called the Court of Protection which deals with such matters and is able to award powers to someone they deem appropriate in the form of a Deputy Order. The decision as to who was to be appointed was completely in the hands of the Court of Protection. It took several months to arrange and the costs of getting the Deputy Order was £3,243 and the estimated annual costs of the Deputy Order was about £1,500. Until that was set up the family had no say over the husband’s financial affairs or his medical treatment and rehabilitation.

There are two parts to an LPA. One is Health and Welfare and concerns medical treatment and related matters. The other is Property and Financial Affairs which deals with financial decisions and assets such as houses. One or both can be done. If done by a professional, which we would recommend, setting up an LPA is likely to cost in the region of £300 to £400.