How to prevent things going wrong with your Lasting Power of Attorney

With dementia continuing to rise, the importance of Lasting Powers of Attorney (LPA) cannot be overstated. An LPA can be a vital tool, giving a friend, loved one or solicitor the power to make decisions on your behalf should you reach a position where you are unable to.

Safeguards are built into them to ensure they are used appropriately, but there are steps you can take to ensure things do not go wrong.

Choose the right attorney

If you want to prevent any future issues with an LPA, then choosing the right attorney at the outset is crucial. There are many duties involved in acting as an attorney for someone, so you need to pick someone responsible and organised, as well as someone who knows you well and can be trusted to act in your best interests.

You may want to select more than one attorney – this will make abuse of the powers associated with an LPA much harder.

If you do choose more than one attorney, you can set out whether they need to act together or separately for certain issues.

Informing loved ones

One important safeguard is the fact that the ‘donor’ (the person handing over their powers to their attorney) can name up to five people who must be informed before the LPA is registered. It’s important to do this – these loved ones can then step in and dispute the registration, should they believe that the donor was put under undue pressure or the attorney is set to behave in an inappropriate way

It’s a good idea to speak to your friends and loved ones who aren’t named on the document in advance of organising an LPA too. You can explain why you are doing it and how you want the powers to be used – this can help reduce the chances of fraud and should also reduce the chances of conflict between family members later on.

Guidance

Another safeguard is the ability for donors to have certain guidance for the attorney written into the LPA. For example, this may suggest that they meet a couple of times a year to go through bank details and discuss financial arrangements for the next six months. This should also make it harder for any fraud to take place.

Organising an LPA can give you peace of mind that you will have someone you trust making decisions for you, should you lose the ability to do so.

Choosing the right attorney, and getting the right LPA in place, can take some time, but it is time well spent.

If you’re struggling to choose an LPA or would like advice on how to appoint one, feel free to get in touch with us at Finance North Estate Planning Services on one of the numbers below.

Cheshire Office: 0161 771 2056 or Staffordshire Office: 01782 963 303

Or simply complete you details below and one of our consultants will call you back.

Finance North Estate Planning Services
Pole Farm Cottage, Pole Lane, Antrobus, Cheshire, CW9 6NN
The Dudson Centre, Hope Street, Stoke on Trent, ST1 5DD

www.FinanceNorthEPS.co.uk

How wealthy families keep their wealth.

David Cameron’s father’s will makes interesting reading.

He left a fortune of £2,740,000 from which the ex-Prime Minister received the sum of £300,000, but what is interesting is that:-

  • He appointed his children as Executors and Trustees.
  • He and his wife owned their home as Tenants in Common rather than joint owners.
  • His half of the home went into Trust rather than directly to his widow.

 

Cameron Will

 

Trusts have been instrumental in mitigating tax since the Medieval times. Trusts were initially created for the Nobility and wealthy landowners to avoid paying taxes to the Crown. Nowadays, you don’t have to be a Nobleman, or a wealthy landowner to want to take advantage of the many tax strategies Trusts can provide.

The use of Trusts ensures that assets are protected from attack from the following.

  • Care Fees
  • Divorce / Separation
  • Creditors / Bankruptcy
  • Inheritance Tax
  • Generational Inheritance Tax

We have advised many clients from all walks of life in protecting their homes and other assets, so that their children and grandchildren can maximise their inheritance, and we have now launched a fixed price package to specifically tackle the above problems at an affordable price for all home owners and from all walks of life.

Firstly you will receive a free no obligation home visit from one of our trained consultants which usually takes about 1hr where you can ask any questions and discuss the matter in more detail.

Once you have decided to proceed we will take all the necessary instructions and then commence constructing a Will each, a Flexible Family Trust each with Memorandum of Wishes and also a Deed of Severance. Within approximately 2 weeks your consultant will return with all the documents for signing.

 

PPT

On first death, the deceased’s share of the property is passed into their Flexible Family Trust via the Will. The surviving Spouse or Partner continues to live in the property and is still able to move home if they choose to do so. In the event that the survivor enters care, the survivor only owns half a share of the family home.

The beneficiaries have access to the Trust Funds but we ensure that these assets do not enter their estates and so are protected from attack by the following:

  • Marriage after Death – Placing half of the family home and other assets into a Trust on first death ensures that, should the surviving spouse or partner marry in the future, those assets cannot be taken into the marriage and removes the threat of your children being disinherited.
  • Divorce – Placing your assets into a trust ensures if your children or chosen beneficiaries are subject to a divorce then what you intended them to receive is protected from any divorce settlements.
  • Creditors – Similarly if any of your beneficiaries are subject to Creditor claims or bankruptcy then their inheritance would not be exposed to these claims.
  • Care Costs – The trust ensures that they do not add onto the beneficiaries own estates and so cannot be assessed for their care costs.
  • Further or Generational IHT – Holding the assets in the trust ensures that they do not add to the beneficiaries estates and impact on their own Inheritance Tax.

For more information, please call 0161 771 2056 or simply complete the form below
and one of our consultants will gladly answer any questions you may have.

Finance North
Estate Planning Services
Offices in Cheshire and Staffordshire

www.FinanceNorthEPS.co.uk

 

 

 

Before You Forget…

At breakfast this morning, a woman said to her husband: “My memory is getting really poor, I went upstairs yesterday to get something and by the time I got to the top of the stairs I had forgotten what I was going for.” 

The husband said: “How bad is your memory?”

 She responded: “Sorry, what were we talking about?”

Old jokes are always the best, but early signs of a loss of memory are an uncomfortable reminder of the aging process and certainly no joke.  Some of us will inevitably get dementia or other debilitating conditions that could result in the loss of mental capacity.

Do you know what happens if you or your partner becomes unable to make decisions for themselves due to old-age memory issues or dementia? Potentially you can find yourself in a position where you cannot pay for services or make decisions, without lawyers and something called the Office of the Public Guardian (OPG) being involved. It’s an expensive and long-winded process. That is, unless you have written a legal document called a Lasting Power of Attorney (LPA) in advance of your loss of mental capacity.

The Citizens Advice Bureau website says:

You should make an LPA if you have been diagnosed with, or think you might develop, an illness which might prevent you from making decisions for yourself at some time in the future.

“The kinds of illness which might prevent you from making decisions for yourself include:

  • dementia
  • mental health problems
  • brain injury
  • alcohol or drug misuse
  • the side-effects of medical treatment
  • any other illness or disability.

“You must make an LPA whilst you are still capable of making decisions for yourself. This is called having mental capacity”

At Finance North Estate Planning, we are experts in writing Lasting Powers of Attorney and talking you through the pitfalls. Whilst no one wants to think about the potential of problems in later life, writing an LPA could save you and your family considerable cost and grief in the not too distant future.

Call us today on 0161 771 2056 for a no obligation discussion about these issues. Or complete your details below and one of our consultants will call you.

Finance North Estate Planning
Offices in Cheshire & Staffordshire

Make A Good Decision in 2017

Alzheimer’s disease and dementia knocked heart disease off the top of the list for main causes of death in England and Wales for the first time. Here at Finance North Estate Planning Services we offer advice on planning for the future.

In 2015, 61,686 out of a total of 529,655 deaths registered in England and Wales were attributable to dementia, according to a report just published by the Office for National Statistics (ONS) – that’s 11.6%.  The mortality rate for dementia has more than doubled since 2010 and the Alzheimer’s Society estimates that one million people will have the condition in the UK by 2025.

This statistic raises important questions for families around writing wills. When a person is diagnosed with dementia, it’s a good idea to get their legal and financial affairs in order and give a friend or relative lasting power of attorney. This helps in the future in case there is a point when the dementia sufferer can’t make decisions for themselves.

Indeed, the Alzheimer’s Society recommends this in its ‘Planning Ahead’ guidebook for people with dementia: “Once you have had a chance to adjust to your diagnosis, take time to ensure your affairs are in order.

It may become more difficult for you to make decision or choices about financial or legal matters as time goes on. Where possible, make these plans as early as you can with a trusted friend, family member or professional (choose someone who is likely to be able to support you as time goes on).”

One of the most important aspects of forward planning for everyone, particularly if dementia runs in the family is to investigate making a Lasting Power of Attorney (LPA). An LPA enables someone to choose who they want to make decisions for them, should they become unable. Those decisions could be around their financial and property concerns or their health and welfare. This may also cover deciding whether they should go into a care home.

If a person with dementia hasn’t made an LPA and loses the ability to make decisions, the situation for loved ones can be complicated – and distressing. In the case of financial decisions, for example, only someone with a formal legal power can completely manage another person’s affairs. So if a dementia sufferer hasn’t made an LPA, their loved ones will need to apply to the Court of Protection to become their deputy in order to manage finances on their behalf. It’s doable but it can be stressful and time consuming.

There are two separate categories of LPA – one around finances and another around health and care. Each has to be set up individually, and registered with the Office of the Public Guardian.

Lots of people use professionals to help navigate LPA forms as they are binding legal documents, and your wishes or those of your loved ones have to be drafted carefully.

Here at Finance North Estate Planning Services we can help you write your LPA so give us a call now on 0161 771 2056 or complete the form below for advice on ensuring that, as the number of people suffering with dementia rises, you and your loved ones know you’re protected should decision making become difficult.

Finance North Estate Planning Services
help@financenortheps.co.uk
Offices in Cheshire & Staffordshire

Lasting Powers of Attorney – what are they and what do they do?

 

This summer Sir Jackie Stewart announced that his wife Lady Helen Stewart is suffering from dementia.

The world champion Formula One driver explained that his wife now requires around the clock care. Lady Helen, 68, was diagnosed with dementia 2 years ago, but this is the first time the racing driver has spoken about the changes he has seen in his wife.

According to the Alzheimer’s Society 225,000 Britons each year are diagnosed with the condition. It further highlights the need for people to have LPAs (Lasting Powers of Attorney) in place.

If mental capacity is lost prior to making a Lasting Power of attorney it can cost thousands of pounds through the Court of Protection.

Contact us today for written details of what a Lasting Power of attorney does, and how you can go about organising one.

Finance North
Estate Planning Services

0161 771 2056
help@FinanceNorthEPS.co.uk