The True Cost Of Old Age

New figures released by the Alzheimers Society suggest that, within the next 10 years, their will be around 80,000 people in Britain suffering from some form dementia.

There are a number of concerns that old age brings with it but one which can be relatively easy to negate is who will look after your finances if you are unable to do so yourself.By putting in place a Finance and Property Lasting Power of Attorney (LPA), you get to choose who will manage your finances on your behalf when you are unable to make the decision yourself.  Anyone, family, friend or professional can be an Attorney so long as they are over 18 years old and do not suffer from any mental incapacity themselves.  There are a number of ways in which more than one Attorney can be appointed and your legal adviser should go through this with you during the initial appointment.

Forbes solicitors offer the service on a fixed fee basis and the process is relatively quick, although all new LPA’s need to be registered before they can be used and this is a process which can take 2-3 months.

If an LPA has not been prepared and the worst happens such as a stroke, which leaves a person unable to manage their finances, then the alternative option is to apply to the Court of Protection for a Deputyship Order.  This process will take approximately 6 months (so long as there are no complex issues that need to be dealt with and provided that no-one objects to the application) and can cost significantly more than an LPA (costs are fixed by the Court).  On top of the fixed Court fees and a £400 application fee, a medical assessment will need to be carried out by a medical professional incurring further cost and there are also annual supervision fees, appointment of deputy fees and insurances costs to consider.

By creating an LPA you get to appoint someone you trust to manage your finances at a time when you are at your most vulnerable financially.  It is also worth bearing in mind that it is now possible to create a Health and Welfare Power of Attorney which allows your trusted person to make health and welfare decisions on your behalf if you are unable.  Whether or not your Property and Finance Attorney should be the same as your Health and Welfare Attorney is something to be discussed with your legal adviser.

For further advice or an initial consultation please call Kirsten Bradley, a Wills, Probate, Tax and Trusts Solicitor at Forbes Solicitors on freephone 0800 975 2463 or contact our Solicitors online or read about our other Elderly client services.

This entry was posted in Wills, Tax, Trusts and Probate.