Allan Ross, IFA Ware Hertfordshire - Why set up a Lasting Power of Attorney?

Tuesday 12 May, 2020

In this article SOLLA accredited Allan Ross reviews why Lonsdale independent financial advisers always recommend our clients set up wills and Lasting Power of Attorney (LPA), as it allows you or someone you care about to appoint an attorney to act in your interests.  

If you haven’t set up an LPA and require more information contact your local Lonsdale Wealth Management office, complete our booking consultation or call us on 01727 845500.

What is a Lasting Power of Attorney?

Appointing a Lasting Power of Attorney enables someone to act as your legal representative or ‘attorney’ if you were unable to make decisions for yourself. Setting up an LPA does not instantly give power to your named attorney this would only happen in circumstances where you couldn’t do it yourself.   For example, if you were in hospital following an illness or major accident, had worsening health due to ageing, a physical injury or a brain injury.  

What happens if you don’t have a Lasting Power of Attorney set up?

If you don’t have an LPA set up when you need it the costs increase dramatically and the decisions that need to be made for a loved one may be taken out of your family’s hands via a deputy appointed by the courts and supervised by the Office of Public Guardian.

Who should you appoint as your attorney?

Most people normally appoint a family member or trusted friend as their Lasting Power of Attorney to communicate their wishes if they are unable to, or you could nominate a solicitor.  An attorney can make many decisions including those related to healthcare and financial issues.  Although there is a cost to appoint a solicitor, they are able to reduce the stress on family as the pressure on them to make all the decisions can become overwhelming.

Two types of Lasting Power of Attorney

Property & financial affairs attorney

Your attorney will assist you with manging your finances.  For example, manage your savings and investments by opening and closing accounts or investing money on your behalf.  They could pay your bills, receive your pensions and benefits.

Health & Welfare

Setting up an LPA for Health & Welfare allows you to nominate someone who can make healthcare decisions on your behalf if you were unable to. Your attorney will be able to make decisions on the correct level of medical and healthcare you require or decide if you should be admitted to a care home or be resuscitated after an illness.

Allan Ross, Lonsdale independent financial adviser with SOLLA accreditation in Ware, Hertfordshire said: 

‘Whenever we meet clients’ we always ask if they have an up to date will and have appointed a Lasting Power of Attorney.  You can set this up at any time but it’s important to put arrangements in place ahead of time so that the right healthcare and financial help can be provided when the time comes.  It’s often not easy to admit that yourself or someone you care about is getting old but remember your attorney will only act for you if you are unable to make decisions for yourself and they don’t need any legal experience.  Appointing an attorney is really beneficial because you can nominate someone who you trust, and this avoids conflict if loved ones are likely to argue about what is best for you.  Although none of us wants to be in a position where we can’t make decisions if you nominate an attorney you can talk through various scenarios, so your attorney understands what you want to happen. For example, you could give your attorney the consent to refuse you receiving life sustaining treatment or decide where you live whether in a nursing home or a residential care home and provide details of those you like and can afford.’

Allan Ross, member of the Lonsdale Wealth Management Ware financial planning team continued: 

‘At Lonsdale Wealth Management we have a vulnerable client group that meets regularly to discuss client issues such as lasting power of attorney.  Given the current situation it is now more important than ever that clients prepare a will and appoint an attorney so our client’s wishes can be fulfilled at all times.  At our recent vulnerable client group meeting I discussed the difficulties caused for our independent financial advisers when LPA’s are not set up properly.  In a case I was involved with recently the health & welfare part of the LPA was not set up, so the care homeowner refused to speak to the family and the client couldn’t receive the care they wanted which was distressing for their relatives.  Our financial advisers work closely with other local professional intermediaries.  If a client hasn’t set up their will or LPA, we can recommend they use one of our approved local solicitors, to set up their Will or Lasting Power of Attorney.  In respect of financial advice there is information that we recommend adding to an LPA, within the document we would ask that solicitors include the following wording to ensure that attorneys can still allow discretionary fund managers authority to invest on behalf of the client.’

Suggested Wording that should be included in the Property & financial affairs LPA

‘My attorney(s) may transfer my investments into a discretionary management scheme.  Or, if I already had investments in a discretionary management scheme before I lost capacity to make financial decisions, I want the scheme to continue. I understand in both cases that managers of the scheme will make investment decisions and my investments will be held in their names or the names of their nominees.’

How can SOLLA help if you don’t have a Lasting Power of Attorney?

SOLLA helps people and their families in finding trusted accredited financial advisers who understand financial needs in later life. A well-qualified financial adviser is also somebody who understands the plans you need to make for your retirement years.

The complexities of the many decisions you or your family may need to face when looking at issues such as care funding matters or whether equity release is the right thing for you, need careful and considered advice. Financial advice should help you make clear and informed decisions knowing that you have had the information and choices presented to you in a way that helps you make the best choices and decisions for you or for a family member.

In 2020 Allan Ross, Lonsdale Wealth Management independent financial adviser in Ware, achieved the Later Life Adviser Accreditation (LLAA) and became a member of the Society of Later Life Planners (SOLLA) which gives independent recognition of his skills and experience in working with and understanding the needs of older people and their families.

In Summary…

If you haven’t set up an LPA or require financial planning advice please contact one of our Lonsdale financial advisers for more information on 01727 844500 or speak to your solicitor.

 

 

 

 

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