How to get your LPA up and running.
If you’re in Scotland the laws haven’t changed and if you’re in Northern ireland, then Enduring Power of Attorney decisions still apply.
Firstly, the person giving away the power (the donor) needs to be at least 18 years of age. They need to have their mental capacity intact when they complete the document. The attorney (the person receiving the power) must be appointed in an approved manner as described by the Mental Capacity Act (MCA); it must be completed in the format requested and must be registered with the Public Guardian.
Your attorney must also be over eighteen when they act, not bankrupt or subject to an interim bankruptcy order. They should be trustworthy and not have any conflicts of interest with the donor.
Two or more attorneys should be appointed, although you can appoint just one. One gives the risk of financial abuse a much higher chance.
They attorneys can act jointly where they all have to make the joint decisions. They can also act (the most favoured route) jointly and severally. It is more flexible and has more risk than jointly only as any of the attorneys can do their financial work involved on their own as they can act independently.
A new use of the LPA is that some actions can be settled joinly with others being actioned jointly and severally, as decided by the donor at the outset. This could lead to confusion and we can’t see how the banks could cope with this!
Advisers from LSUK will always warn about the risks associated to all different kinds of appointments. For example, if acting jointly, what happens if one attorney is made bankrupt or dies first – this terminates the LPA as those listed can’t all act jointly.
Ending a marriage or a civil partnership would also end the LPA relationship between donor and attorney.
Luckily, the new LPAs allow you to appoint a substitue, so sitting on the bench is worthwhile after all.
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