Being An Attorney
Lasting Powers of Attorney registrations are growing. In this article Sean Aldridge, a specialist in estate planning, explains the role of an attorney
According to the Ministry of Justice, in the quarter April to June 2021, 160,431 Lasting Powers of Attorney were registered – an increase of 61 per cent over the same period in 2020.
When a Lasting Power of Attorney (LPA) is created, the donor of the power appoints one or more attorneys to act on their behalf should they find themselves unable to deal with their own affairs. There are two types of LPA, the first covering a person’s property and financial affairs and the second relating to decisions on health and welfare matters.
What are the responsibilities of an attorney?
An attorney must ensure they follow any instructions set out in the LPA. This includes considering any wishes expressed by the donor who must be helped to make as many of their own decisions as they can. Whilst using an LPA, the attorney must also respect the donor’s human and civil rights and act in their best interests.
Attorneys can be appointed jointly (all must agree with a decision) or jointly and severally, meaning any of the attorneys can make decisions independently.
A Property & Financial Affairs LPA enables attorneys to deal with money, pay bills, manage bank accounts and investments, and buy or sell property on the donor’s behalf. The attorney will also be able to deal with any benefits or pension arrangements but must always keep any funds or investments separate to their own.
An attorney has limited powers to make gifts on behalf of the donor, usually relatively small amounts on customary occasions such as birthdays or Christmas, to friends and family.
The Health & Welfare LPA enables an attorney to make general care and welfare decisions such as medical care, washing and dressing and more serious matters such as life sustaining medical treatment. Whether an attorney is appointed under a Property & Finance or Health & Welfare LPA or both, the attorney also has a duty to keep proper records of significant decisions made, how finances have been dealt with and how money has been spent.
Lasting Powers of Attorney are a prudent thing to consider, allowing attorneys to assist in the management of affairs should a person lose mental capacity. As an important part of estate planning for the future, Lasting Powers of Attorney should be created at an early stage to avoid difficulties further down the line as people age. Talk to a specialist legal adviser for guidance.
Sean Aldridge is a Senior Associate at regional law firm Napthens
napthens.co.uk
