Nobody really wants to think about a time when they may not be able to look after their finances. But there are all sorts of reasons why people can’t – or don’t want to – deal with things like their pension. At LCP we’re seeing the use of Lasting Power of Attorneys (LPOA) increase, as the benefits of having one in place are becoming more widely known; they can really help ease the burden for a relative or friend who is trying to help you at a potentially emotional time.

Setting up a LPOA for the future is something you may be putting off – but you shouldn’t. In England and Wales a LPOA for property and financial affairs can be set up, without a solicitor, using free standard forms available from the Office of the Public Guardian at a cost of less than £100 to register the LPOA (a similar system exists in Scotland). And it’s beneficial for a number of reasons:

It's not just for people over a certain age

It’s true that older people are more likely to need one, as the effects of ageing often mean a reduction in capacity – and interest – in people handling their financial affairs. However, LPOAs are useful in a range of circumstances – if you are planning on spending a period of time abroad for example, or have an operation planned and do not want to deal with your finances while recovering.

Your spouse or child can’t sort out your pension for you

This is a common misconception – being your spouse or a child does not automatically give someone the ability to handle your financial affairs. Your spouse can’t ask us to change your address or bank details for example, and we cannot provide them with payslips or other financial information.

Not having a LPOA may make things more difficult later on

If you don’t have a LPOA in place then you will still need to be prepared to handle your finances. Should you lose mental capacity and not be able to take decisions, an application may need to be made to the Court of Protection to appoint a Deputy to manage your affairs on your behalf. This is a lengthy and costly process, and the Deputy will have formal responsibilities, including the submission of an annual report to the Office of the Public Guardian.

Of course, if you already have a Lasting Power of Attorney in place, then do let us know! Once we have checked that it has been registered with the Office of the Public Guardian, we can then accept instructions from your Attorney(s) should the need arise in the future.

More information can be found at: www.moneyhelper.org.uk/en/family-and-care/long-term-care/setting-up-a-power-of-attorney-in-england-and-wales