Sep 13 16

Power of Attorney Essential if you have Drawdown Pension

Roger Wastnedge

If you have a draw-down pension – that is a pension pot that you draw from as opposed to an annuity – then it is essential that you consider setting up a Lasting Power of Attorney (LPA). The point about a draw-down pension is that it requires ongoing management until you die. For most people who are now retired it is likely that at some point they will be in a position where they are unable to do so on either a temporary or permanent basis. This means that, without the appointment of an attorney, they will be unable to instruct their adviser on making any alterations to their draw-down arrangements, with potentially devastating impact on the financial situation of themselves and their family.

There are two types of LPA, a Health and Welfare, and a Property and Financial Affairs. You can find out more by clicking through here. However you can only set one up whilst you have the mental capacity to do so. The alternative is for your relatives to apply to the Court of Protection for the appointment of a Deputy to manage your affairs; not only is this a slow process that could leave your family in financial difficulty in the meantime, or mean your investments lose significant value because your advisers were unable to manage them, but it is also much more expensive than making an LPA. Typically it could cost you (since the fees will eventually be drawn from your assets) upward of £2000, with ongoing costs on an annual basis. Clearly it is much better to sort this out now whilst you can select who you want to act as your attorney, rather than leaving it to others to do.

For more information contact me using the form, or call me on 0151 559 0695. Whatever you do, don’t delay.


Sep 1 16

What is a Lasting Power of Attorney and why do I need one?

Roger Wastnedge

It is a sad fact that 225,000 people in Britain develop dementia every year according to the Alzheimer’s Society.

Lasting Powers of Attorney (LPA’s) were introduced in 2007 as a replacement for Enduring Powers of Attorney (EPA’s) as a result of the enactment of the Mental Capacity Act 2005.

The function of an LPA is to allow for a donor – the person making it, to choose trusted people known as attorneys, to make decisions on the donor’s behalf and protects those who do not have the physical or mental capacity to make decisions for themselves. All LPA’s are dealt with and legally enforced by the Office of the Public Guardian.

There are two types of LPA that currently exist, the first of which is a ‘Health and Welfare’ LPA. This type of LPA can only be used in situations where the donor does not have the mental capacity – the ability to make decisions for themselves and cannot be invoked otherwise. There is some flexibility as to the extent of the powers the LPA can grant – the appointed attorneys can only make specific decisions if you outline it to be so, for example making judgements such as daily routine and diet, right through to moving into supported care or agreeing to lifesaving medical treatment.

As well as the Health and Welfare LPA, there is the ‘Property and Financial Affairs’ LPA, which as the name suggests links directly to the personal property and money of the donor, and what the attorney can do with it. A Property and Financial Affairs LPA can be used immediately upon registration, there is no requirement for the lack of mental capacity. Many people opt to make both types of LPA, though there is no necessity to do so, you can opt to make or the other.

Preventative measures do exist to make sure attorneys only ever act within the donor’s interests, and that they must follow instructions regarding any specific decisions.

I can provide you with advice on the creation and registration of an LPA to include these preventative measures. Contact us today on 0151 559 0695, or use the contact form below.

Talk to Roger Wastnedge of Border Wills of Merseyside if you feel you or a loved one may need to appoint an LPA.