Having a Lasting Power of Attorney gives peace of mind in case the unthinkable happens, and more of us are choosing to have them earlier in life. But are they still fit for purpose or open to abuse?
When were LPAs introduced?
Lasting Powers of Attorney were introduced in the UK in 2007. They are put in place to safeguard elderly and vulnerable people, who could ensure their affairs would be protected and looked after by someone they trust. They were designed to provide greater protections and more flexibility than Enduring Powers of Attorney.
What are they used for?
There are two categories of LPAs – Property and Financial Affairs, and Health and Welfare. The former can be used at any time once it has been registered with the Office of the Public Guardian, whereas a Health and Welfare LPA can only be used once you lose mental capacity.
LPAs are relatively easy and affordable to put in place. This can be done either through a solicitor or a power of attorney online provider such as powerofattorneyonline.co.uk/.
Abuse of the system
Recently, there have been calls for the LPA system to be reformed after several cases where attorneys have taken advantage of the person they are meant to be looking out for. While there is legislation to try and safeguard against vulnerable adults being coerced into signing an LPA, it isn’t always enforced by the Office of the Public Guardian.
Whenever anyone uses an LPA certificate to try to open a financial account or withdraw money, the bank should always question any request for over £8,000. They should then contact either the Office of the Public Guardian or the Court of Protection. As this isn’t routinely monitored, some banks are not following what is essentially a legal requirement.
Some unscrupulous attorneys have even been caught marrying someone without mental capacity, despite them having an LPA. A Private Members’ Bill was recently heard, which looked at whether the LPA database should be made available to third parties so that they can carry out checks.