Lasting Powers of Attorney (“LPAs”) and Deputyship Orders

“I am fine – I do not need that yet.” It is a common reaction when LPAs are mentioned. But life does not always give warning, and waiting could leave your loved ones stuck in a legal maze.

At Cripps, we advise all our clients to put LPAs in place, regardless of age. A key reason is to avoid the need for a Deputyship Order.

If you lose capacity without LPAs in place, no one can manage your affairs unless they apply to the Court of Protection for permission to do so.  This involves a Deputyship Order – a process that is more complex, costly and time-consuming than appointing attorneys under an LPA.

Whilst attorneys and deputies have similar duties to act in your best interests, there are significant differences in the process:

LPAs

• You can choose who acts for you – your attorneys can be family, friends or professionals;
• You can put in place an LPA for both Property and Finance decisions and Health and Welfare decisions;
• There is no need to notify anybody (beyond your chosen attorneys), especially if the documents are registered straightaway, which we always recommend;
• Registration takes around 15 to 20 weeks;
• The registration fee is £82 per LPA (shortly increasing to £92 per LPA);

Deputyship Orders

• You cannot choose your deputies – the Court decides, as you will have lost capacity;
• Usually only a Property and Financial Affairs Deputyship is granted. Health and Welfare Deputyships are rare and only made in exceptional cases.
• A full capacity assessment is required, which can be distressing;
• The process involves notifying various family members;
• It can take a year or longer for the Order to be issued – and crucially, during this time no action can be taken in relation to your finances;
• Deputies must submit annual reports to the Court, which supervises their actions;
• The initial Court application fee is £421, with an annual supervision fee of £35 to £320 depending on the level of oversight;
• A security bond is payable before appointment – the amount is set by the Court;
• Fees for a Deputyship Order application could be three to four times the cost of preparing LPAs.

The differences outlined above are not exhaustive, but they demonstrate key reasons why you should get your affairs in order while you have capacity.  Waiting means losing control over who manages your affairs, limiting the decisions that can be made on your behalf, and increasing costs, delay and the burden of reporting to the Court.

If you would like to discuss this further or put LPAs in place, please contact Nicola Hillyer on 01892 506014 or at [email protected]