Preparing for the vulnerability of old age to become 'simpler and cheaper'

People who want to protect themselves in their old age by registering a Lasting Power of Attorney (LPA) while they are still fit and healthy may soon find the process simpler and cheaper.

LPAs were introduced as part of the Mental Capacity Act 2005 which came into force in October last year. They replaced Enduring Powers of Attorney which were less broad in scope.

There are two kinds of LPA. The property and finance LPA is similar to the old system in that it allows you to appoint someone to look after your financial affairs if you become incapable of doing so yourself. The personal welfare LPA introduced new possibilities because it lets you grant an attorney authority over your health and personal welfare.

The broader scope of the new LPAs has made them very popular, resulting in a threefold increase in the number of registrations over the last 12 months. This has led to delays in registration for many people, prompting widespread criticism of the Office of the Public Guardian (OPG) which administers the system.

Now the OPG hopes to make significant improvements by carrying out a review of how the Mental Capacity Act is working. The first stage of the review will look at LPAs and a consultation process is now underway on a number of proposals.

These include:

  • reducing the cost of registering an LPA from £150 to £120
  • making the form and guidance notes clearer and more logical, with the guidance notes being incorporated within the form
  • introducing more supervision of court appointed deputies to provide more support and scrutiny when needed

The Public Guardian, Martin John, said: “We have listened to our customers and brought forward these proposals to make real improvements. But this is just the first phase of our wider work to review how effective the implementation of the Act has been and what else we can do to make a real difference to our users.”

The consultation ends on 15th January 2009 and some of the changes will be introduced next April.

We shall keep clients up to date with developments and are happy to offer advice on Lasting Powers of Attorney. Please contact us if you would like more information.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

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