Have you every considered how your financial and personal
arrangements would be managed if you were unable to
deal with them yourself? Simple things such as writing
cheques and paying bills can become a very real problem
as we get older, especially if we develop an illness
such as Alzheimer's disease.
With Alzheimer's disease we run the very real risk
of becoming mentally incapable of dealing with our own
affairs and must one day become totally dependent on
others to perform this function. It could be as simple
as paying the bills, or as significant as selling a
house to pay nursing home fees.
Once you are mentally incapable of managing your own
affairs, a 'Receiver', usually a close relative, can
be appointed by the court but this is expensive and
time consuming and the court still has to authorise
all major decisions and then charges an annual fee based
on the patient's income.
A more practical alternative before that happens is
to make a Power Of Attorney. In principle it is similar
to an ordinary Power of Attorney which many people use
when they need someone to sign a document in their absence.
The difference is that an ordinary Power of Attorney
is automatically revoked as soon as the person giving
the Power becomes mentally incapable.
A Power of Attorney can therefore enable people to
decide in advance whom they would like to deal with
their affairs for them after they become mentally incapable.
It can be phrased to ensure it only comes into effect
after you can no longer take responsibility yourself.
Although the idea of a Power of Attorney is simple,
making plans like this when you are still fit and well
can be upsetting but waiting until it is too late can
cause much more distress and cost a great deal of money.
Changes to Powers of Attorney brought about by the
Mental Capacity Act 2005 were due to come into force
on 2nd April 2007, but have now been postponed until
1st October 2007, when they will be replaced by Lasting
Powers of Attorney.
A Lasting Power of Attorney will cover personal health
and welfare, but with the need for a separate one for
financial affairs.
It will need to be certified by a designated person,
such as a Doctor or Lawyer, who has known you for at
least two years, for which a fee will be required and
will have to be registered with the Office of the Public
Guardian; this will also involve a fee.
Please do not hesitate to call us in complete confidence
if you wish to discuss any matters relating to this
area.
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