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People with relatives or friends suffering from dementia or those concerned about the prospect of developing the disease should consider taking out a Lasting Power of Attorney (LPA) to protect both their personal welfare and financial interests, according to Black Country law firm George Green LLP.
Emma Wing, associate at George Green LLP, said: “High profile soap storylines, such as the recent love triangle between Mike, Eileen and Lesley in Coronation Street, have done much to raise awareness of the human challenges facing dementia sufferers and their loved ones. However, many families don’t realise that there are legal steps they can take before the onset of the disease that can relieve worries about financial and welfare arrangements and, ultimately, save families money.
With one in five people over the age of 80 now suffering from some form of dementia* and the number of over 80s in the West Midlands alone expected to hit more than 330,000** by 2020, the issue is one that is likely to impact many more people as time goes by.
Emma continued: “Lasting Powers of Attorney (LPA) were introduced in October 2007, replacing Enduring Powers of Attorney (EPA), and can be taken out by anyone concerned about what will happen to their affairs should they become incapable of managing them themselves. This could be for any number of reasons such as a serious accident, planning a period of absence abroad or, in this case, concerns about the onset of Alzheimers or Dementia.
“There are two types of LPA: one covering property and financial affairs and the other health and welfare. Property & Financial LPAs give nominated attorneys the power to make decisions about accessing bank accounts, making investment decisions, claiming benefits, dealing with tax, selling your property and paying bills; while Health and Welfare LPAs, which only come into effect if you lose your mental capacity, allow nominated attorneys to make decisions on your behalf about medical treatment, housing arrangements and so on.
“The key thing to remember is that taking out an LPA does not mean giving up the power to manage your own affairs, nor does it give nominated attorneys carte blanche over your affairs. Restrictions and guidance covering specific issues, scenarios and when the power of attorney actually comes into effect can all be written into the document.”
If no EPA or LPA is in place when an individual loses the capacity to act for themselves, a deputy is appointed by the Court of Protection, which can be both costly and time consuming. In these cases, there is no guarantee that they will make decisions in line with the individual’s previous wishes, which can cause distress for all concerned.
Emma concluded: “No-one knows what the future holds but, with a rapidly ageing population, we’re seeing more and more families who are worried about the impact dementia could have on their lives.
“Putting a LPA in place removes some of the worry from what is already a stressful situation, reducing the amount of red tape and family politics to overcome when faced with important decisions about a loved one’s affairs and ensuring they receive the care and support they deserve, in the way they would have wished it.”
*Figures taken from the Alzheimers Society
** Figures taken from Office for National Statistics