Managing financial affairs
Why would I need someone to manage my finances?
If you are worried about what will happen to your financial affairs if you become ill, have an accident, or you no longer have the mental capacity to look after your own affairs, you can give someone power of attorney to do this for you. This means that you can decide who is to have responsibility for your property and money.
Who could do it for me?
Most people can be given Lasting Power of Attorney (LPA), unless they have been bankrupt. It could be a family member, friend, or someone who offers a professional service such as your bank or solicitor.
There are two types of LPA:
- Personal Welfare – one or more people who can make decisions on your behalf regarding your personal healthcare and welfare.
- Property and Affairs – one or more people who can make decisions on your behalf regarding your property and financial affairs.
When choosing an Attorney you may want to consider their age and whether they will have the time and energy for such a commitment. You may also want to consider whether you would like two people to share the responsibility.
When you have chosen your Property and Affairs Attorney(s), you can give them the power to make decisions about any or all of your property and affairs matters. This could include paying your bills, collecting your benefits or selling your house.
Can I arrange it before I need it?
If you have been diagnosed as having a mental illness or a degenerative brain disease that may lead to mental incapacity such as Alzheimer’s, you may want to arrange for someone to manage your affairs in the future when you lose your mental abilities.
This enables you to select one or more people to act for you now and gives you the opportunity to have a say about your future. It will also make it easier for your carers to act on your behalf if necessary.
Unlike an ordinary power of attorney, a Lasting Power of Attorney (LPA) enables you to set up future arrangements in readiness for when you need them.
Can someone do it temporarily?
If you want someone to handle your financial affairs for a temporary period, for example while you are on holiday or in hospital, you will need an ordinary power of attorney.
If the only temporary power you want to give someone is the right to operate a bank account on your behalf, you should write to your bank or complete a third party mandate form available from them. If you are receiving benefits, you can fill in the back of the order book to allow someone else, called an agent, to cash it for you.
How can I give someone Lasting Power of Attorney (LPA)?
If you are considering giving someone Lasting Power of Attorney (LPA) it is advisable to seek independent legal advice from a solicitor. You will need to complete a specific form available from your solicitor or law stationers. Once the form has been completed it must be signed and witnessed by you (called a donor) and by the person(s) you have chosen (called attorney) to act for you.
What happens if I care for someone who hasn't made a Lasting Power of Attorney (LPA)?
If someone you care for is, or is becoming, mentally incapable and does not have a power of attorney and you wish to manage their financial affairs, you will need to apply to the Court of Protection to be appointed as a receiver.
What is Enduring Power of Attorney?
Enduring Power of Attorney (EPA) has been replaced by Lasting Power of Attorney (LPA). This means that you cannot make any changes to an existing EPA or make a new one.
However existing EPAs can still be used, and an attorney must register an EPA with the Office of the Public Guardian (see below) if they believe you are, or are becoming, mentally incapable.
You can also make an LPA to run alongside an EPA if you wish.
How can I get more information?
Contact the Office of the Public Guardian to find out more, including how to apply, details of fees and downloadable forms.
