Hodge Jones & Allen

By: Alex Hulbert, Trainee Solicitor - Private Client team

26th January 2012

 

We accept the fact of life that each day we get older, not younger. We're also being increasingly exposed to the reality that dementia is a frightening facet of old age - affecting more people than one might think.

 

At the time of writing there are about 750,000 people in the UK suffering from some form of dementia. The Alzheimer’s Society has published the following figures:

 

• 16,000 of these people are under 65 years old; and
• one in 14 people over 65 years old and one in every six people over 80 years old will develop dementia in some form.

For each of us to acknowledge that there is a probable chance that we may develop dementia is not easy; no one wants to consider the prospect of losing their mental capacity to manage under any circumstances, yet alone to manage their everyday affairs. But when this does happen, there is a legal way to ensure that our finances and health will be looked after in a manner that we desire: namely by making a Lasting Power of Attorney.

 

So what is a lasting power of attorney (LPA)?

A simple power of attorney is a legal document where a person gives authority to another person or persons (their attorney(s)) to make certain decisions on his or her behalf. A Lasting Power of Attorney is “Lasting” because it continues to be effective once the donor (the person who made the power of attorney) loses capacity, therefore allowing that person to make decisions on their behalf.

 

Donors most frequently nominate someone they trust, someone who is close to them. This person is often a son or daughter or close friend, and they act as their attorney under the LPA.

If you are interested in preparing a lasting power of attorney, you'll find that it is split into two and below I'll briefly explain the options:

• A property and financial affairs LPA gives your attorney(s) authority to deal with your property and finances as you specify. An unrestricted property and financial affairs LPA authorises your attorney(s) to make any decisions that you can make yourself about your property and finances. This could involve buying or selling property, managing bank accounts and investments or carrying on a business. NB: especially if you are a business owner or partner in a firm, have you thought about an LPA and the consequences of not having one?
• A health and welfare LPA allows your attorney(s) to make health and welfare decisions on your behalf, only when you lack mental capacity to do so yourself. This could also extend, if you wish, to giving or refusing consent to the continuation of life-sustaining treatment. Health and welfare decisions include decisions about your healthcare and medical treatment, decisions about where you live and day-to-day decisions about your welfare, such as your diet, dress or daily routine.

If you think that you and your loved ones would benefit from the security of knowing that your needs would be catered for if you were to lose the capacity to manage your affairs, then I invite you to contact one of the private client solicitors at Hodge Jones and Allen. We would be happy to advise you on this sensitive topic.

 

 

Alex Hulbert is a second year trainee solicitor at Hodge Jones & Allen. Each year the firm accepts up to ten new trainees from many hundreds of applications. The trainees sit four seats (areas of law), working on real cases, under close supervision from partners. Seats are from teams across the firm, usually over a two year period. Trainees are encouraged to write articles on the law they are practising, and get involved in many other creative ways.