Lasting Power of Attorney (LPAs) - Your Questions Answered

power of attorney, wills
Jul 21 | 2021

Lasting Power of Attorney (LPAs) - Your Questions Answered

  Lasting Power of Attorney (LPAs) This is an area of Law, in which we get asked a lot of questions asked about a Lasting Power of Attorney and why is it important to have one in place. The Coronavirus Pandemic, has had a devastating effect on people lives, which has resulted in some people finding themselves in a position where they may not have control of any decisions that may affect them at the time or in the future. A Lasting Power of Attorney can offer comfort to people who have given their loved ones or friends the power to deal with their financial decisions, when they have been unable to do so themselves There is a general fear that once a Lasting Power of Attorney is put in place, the person putting it in place known as a “Donor” loses all control of their financial decisions.  This is not the case at all. Below are some of the commonly asked questions and we have provided answers to help people understand them better and not to fear them.   What is a Lasting Power of Attorney? A Lasting Power of Attorney is a legal document that allows you to name someone (or multiple people) to act on your behalf regarding financial decisions and health and care decisions, should you lose mental capacity to do so yourself.   Who should make a Lasting Power of Attorney? Unfortunately a Lasting Power of Attorney often doesn’t get thought of until the last minute or the later stages of life.  As we all know it is very hard for anyone to predict the future and we would never expect to lose our mental capacity or to be in a situation where we do not have control of decisions. If you are over the age of 18 and have a condition likely to cause a loss of mental capacity then we recommend that you set up a Lasting Power of Attorney as soon as you can. However, we would recommend that you have a Lasting Power of Attorney put in place should any unfortunate events happen in the future.   What are the different types of Lasting Power of Attorney? There are two types of Lasting Power of Attorney and these are:
  1. Financial Decision
This type of Power is used for the running of your bank and savings account, making or selling investments, paying your bills and buying and selling your house.  You can decide whether you want the Power to be used as soon as it is registered which means it can be used when you have capacity and also when you have lost capacity.  Most people choose this option because it is the most practical. We should say that should you decide on this option and while you still have capacity, your Attorneys can only act with your consent.  This option is very useful if you are able to make your own decisions but there’s another reason you want your Attorneys to help you for example, you are unable to visit the bank, talk on the phone or if you are unable to sign documents. You should be careful that if you only want your Attorneys to use the Lasting Power of Attorney, then this could create additional problems for your Attorney, as they may need to provide medical evidence to prove that you are unable to make decisions every time they need to use the Lasting Power of Attorney.  Should there be a need to use the same as a matter of urgency, it could make your Lasing Power of Attorney a lot less useful.
  1. Health and Care Decision
This Power enables your Attorney to make decisions of the type of health care and medical treatment you receive, including life sustaining treatment, where you live and day to day matters such as your diet and daily routine. This Power can only be used after you have lost capacity and unable to make any decisions for yourself. You can give preferences and instructions but it is common that most people do not do this and they talk to the Attorney who are normally children or close family of their wishes in advance.   Who should I choose as my Attorney? It is entirely up to you who you would like to appoint as your Attorney, as long as they are over the age of 18 years and have never been declared bankrupt. We would recommend that you appoint someone who you know really well, can be trusted and will always have your best interests at heart.  The person you appoint can be a family member, relative or in some occasion, even a professional like a solicitor.   How many Attorneys can I appoint? There is no limit to the number of people you can appoint as your Attorney.   Do I need replacement Attorneys? It is not essential to appoint replacement Attorneys, but it may be a good idea to consider replacements if you have only appointed one Attorney should anything happen to them.   Can I change my mind? Once the Power is registered and you have the mental capacity to do so, you can cancel your Lasting Power of Attorney at any point.   What happens if I do not make a Lasting Power of Attorney? If the unfortunate happens and you lose mental capacity without having a Lasting Power of Attorney in place, a member of your family or a representative will need to apply for a Deputy Order from the Court of Protection.  Once the Order has been given that person can act on your behalf.  This could be any member of your family, even ones that you may not have a very good relationship with. This type of application is very lengthy and involved and it could take up to ten to twelve months before any Order is granted.  Unfortunately, applications made at this time is normally when urgent decisions need to be made. It is a costly application and costs of up to £2,000.00 can be incurred, which is why we would strongly recommend that you consider a Lasting Power of Attorney now to avoid any situations like in this future.   If you would like to put in place a Lasting Power of Attorney or wish to discuss matters in more detail, then please do not hesitate to give one of our team a call on 0330 123 1131 or for more information please Click Here Anne-Marie Hern - Probate Legal Executive

Redress Scheme - Private Rentals

housing, landlord, tenant
Jul 09 | 2021

Mandatory Redress Scheme - Private Rental Sector

The government’s housing minister last week warned landlords of an imminent, mandatory redress scheme.   A redress scheme is an independent body that seeks to resolve issues made by consumers about members of the scheme. In England, a property redress scheme is already in place which requires both Property Managers and Agents to be a member; provided either by The Property Redress Scheme or the Property Ombudsman. A similar scheme is in place in Wales through Rent Smart Wales, requiring either a license, registration or both for agents, property managers and private landlords. The basis of the scheme is to offer a cheaper, more accessible means for resolving disputes without the need for litigation. Members of the scheme face the threat of paying compensation to complainants, or even expulsion from the scheme if they fail to pay their fines.   Private landlords in England remain exempt from the Letting Agency Work and Property Management Work (Approval and Designation of Schemes) (England) Order 2013 which made membership mandatory and although the scheme is open to private landlords, few have joined. Further, it is only commercial landlords who require membership to the Property Redress Scheme in Wales.   The then Communities Secretary, James Brockenshire first announced a mandatory membership for private landlords in January 2019, but no detailed proposals have been published, nor any legislation into force since, but a clue to its introduction came in the Queen’s Speech in December 2019. The briefing notes highlighted that one of the benefits of the Renters Reform Bill would be ‘… all tenants having a right to redress if their rented properties are not safe and healthy’. Later in March 2020, Robert Jenrick, Housing Secretary, confirmed during a speech in the House of Commons that the government would set up a mechanism for ‘leaseholders to seek proper redress for their genuine grievances’. Again, in March this year, the topic was ignited once more when he stated in his speech at the National Housing Federation Summit that ‘tenants should be able to seek redress in reasonable time without an uphill struggle and know that they will be heard’. After a long conversation around the subject, the confirmation of a mandatory membership for private landlords came by way of Lord Greenhalgh, the governments’ housing minister in June of this year.   The introduction of a mandatory scheme would mean that the whole private rental sector would be accountable to a complaint process. Currently, approximately half of all landlords use a letting agent, but this legislation would mean that all DIY landlords would be subject to the same redress obligations. Greenhalgh believes that tenants with a legitimate complaint about their home will have access  to a more straight-forward, available resolution, while landlords will have a clearer understanding of their obligations. Sean Hooker, Head of Redress at the Property Redress Scheme believes that a mandatory scheme is long-overdue and that a single gateway for tenants to access complaint services would mean that ‘complainants would be able have their complaint signposted to the right service, that data could be shared allowing the complaint to be effectively dealt with as quickly and effectively as possible.’   But sceptics believe it will fall short of the ‘fix’ it aims to be. Social landlords already have a redress scheme, the Housing Ombudsman Scheme, and that does not eliminate poor practice. Further, there are many thorny crossovers that would need to be ironed out before any legislation came into force. If a property is managed by an agent, does the landlord need membership to a scheme too? If the landlord and agent are members of different schemes, which redress route would a tenant have to take? Would a redress scheme force unscrupulous landlords further under the radar? Would the absence of a registration prevent an eviction?   In the face of recent investigations, such as Daniel Hewitt’s report into moldy and poorly maintained homes, this reform deserves attention. An accessible scheme which holds all landlords to account and promises to be more effective then schemes currently in place will be more important than people may realise. The whole private rental sector could be facing an overdue, vigorous shake up. Please contact our Landlord and Tenant team to discuss any queries you may have on 0330 123 1131   Louise McGowan - Graduate Solicitor - Property Litigation

Tenancy Hardship Grants (Wales)

eviction, housing, landlord, tenant
Jul 01 | 2021

Tenancy Hardship Grants (Wales)

  The Welsh Government have announced a Tenancy Hardship Grant Scheme which aims to support tenants who are struggling with rent arrears due to the Coronavirus pandemic. The move comes as the eviction ban comes to an end in Wales on June 30th 2021.   The scheme is funded with an £10m cash injection from the Welsh Government; it will be administered by local authorities and will replace the Tenancy Saver Loan Scheme (which was introduced in December 2020).   Tenants can register their interest in the Grant from 1st July 2021, with funding to be made available towards the end of July.   If a tenant is successful in obtaining a grant, it will be paid directly into the landlords’ bank account; thus the scheme goes some way in addressing the unprecedented stress and hardship that many landlords’ have felt throughout the Coronavirus pandemic.   However, it is essential that the scheme is accessible for those that need the support. An Information Request revealed that only 41 loans had been awarded under the old Tenancy Saver Loan Scheme between October 2020 and April 2021. This reiterates the view that accessibility and availability of grants under the new Tenancy Hardship Grant Scheme will be crucial if it is to have a positive impact in helping tenants and private landlords.   The scheme puts increased pressure onto the English Government to introduce a similar rent arrears relief programme; however there has been no indication as to whether they intend to follow in introducing such scheme.   At NewBold Solicitors, we can offer advice to both Tenants and Landlords. If you would like to discuss your case with us, please call our dedicated team on 0330 123 1131 or visit our Landlord or Tenant Services pages for further information.   Jake Wesson - Graduate Solicitor - Property Litigation

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