Top Gradient
Nav Divider   Home   Nav Divider   Meet Us   Nav Divider   Legal News   Nav Divider   Careers & Training   Nav Divider   Offices   Nav Divider   Downloads   Nav Divider   Links   Nav Divider   Sitemap   Nav Divider
Top Nav Divider Top Nav Divider PrivateTop Nav DividerBusinessTop Nav DividerCorporateTop Nav Divider

Legal News

Who will keep watch when you can't?

Looking at how Lasting Powers of Attorney (LPAs) safeguard your business and finances in times of emergency.

The benefits of drawing up a will are widely recognised - the process allows you to avoid potential tax traps and makes provisions for the winding up of your affairs after death. A will gives peace of mind, knowing that you have selected Executors whom you trust to administer your estate.

But what would happen if you were rendered mentally or physically incapable? Who would look after your business and family finances? Who would make decisions about your welfare and health treatment?

In early 2008, Brooks Mileson, the owner of Scottish Premier League football club Gretna FC became critically ill in hospital. Players and staff were not paid because Brooks was required to sanction all payments. "There are a lot of questions which we don't have the answers to. The only man who has the answers is ill in a hospital" said Gretna FC Chief Executive Graeme Muir during the dilemma. Subsequently, Gretna FC were forced into administration and had to leave the Scottish Football League entirely.

What happens if you loose mental capacity?
Loosing mental capacity without an LPA (or prior to October 2007 an Enduring Power of Attorney) in place means only the Court of Protection has power to appoint someone to manage your finances (but the Court can not make healthcare/welfare decisions). The procedure, as Gretna FC found to its peril, is slow and bureaucratic and you loose your right to choose who will have responsibility for looking after your affairs.

How can you prevent this?
The solution is to draw up and register an LPA. An LPA is a document which allows you to appoint someone to act on your behalf and have this appointment registered with the Court of Protection.

LPAs differ from ordinary powers of attorney - they remain valid after the individual who has granted the power becomes mentally incapable. They are flexible too:

  • One or more attorneys may be appointed to act together, jointly or separately.
  • You can appoint a successor to an attorney to cover your attorney being unable to act for you.
  • You can limit the attorney's power.
  • You may provide whether the LPA is to operate immediately, or only if you have lost mental capacity.

Healthcare and personal welfare
LPAs can be extended to provide for your wishes on healthcare and personal welfare matters when you have lost the mental capacity to make those decisions for yourself, for example:-

  • Giving/refusing consent to continuation of life-sustaining treatment
  • Directions on treatments with religious beliefs in mind
  • Day-to-day care:
    • Diet
    • Social/religious activities
    • Routine medical matters

The Lawyer's Role?
Ensuring you understand what is involved, advising you about the powers that you can give to your attorney and, if the time comes, advising your attorney to let the Court of Protection know and advising your attorney what needs to be done next.

Value
Having peace of mind is value. Imagine the chaos which would result if your loved ones could not immediately access funds for you, them and your business?

The Wills, Trusts and Probate department of Hodders Law firm advises on lifetime planning - wills, trusts, estate planning as well as Powers of Attorney, Probate and the Administration of Estates.

For more information contact Sherine Silva directly at
sherine.silva@hodders.co.uk or call 020 8965 9862.