An ageing population and the need to plan for the future

At present, the Alzheimer’s Society estimates that there are 900,000 people living with dementia in the UK.  This number is projected to rise to over 1 million in 2025 and then to 1.6 million in 2040.  Of the 900,000 figure, 70,800 are living with young-onset dementia meaning dementia can develop at all ages.  These figures make clear that we should all plan for that ‘worst case’ scenario.  

It is a fact that we are an ageing population.  People are living longer due to improvements in health, diet, and care.  This then leads to an increase in the number of vulnerable people and those who are mentally unable to manage their financial affairs.  The statistics above reinforce the point that it is crucial to prepare for the future.

Our advice is always to make a lasting power of attorney (LPA) so that you choose the person who will look after your affairs should you not be able to do so yourself.  If you do not have an LPA, and subsequently lose mental capacity, someone will have to make deputyship to the Court of Protection and that might not be the person you would ideally want to look after your affairs. 

An LPA is a legal document that allows an individual to appoint a trusted person (typically a family member or close friend) to make decisions on their behalf when they become unable to do so due to mental or physical incapacity.  It is important to appoint someone you trust so that your funds are applied in a way you would want and to prevent being financially abused.

Financial abuse can take many forms.  From the more obvious abuse where large sums of money are taken from someone’s bank account, to the covert use of persuasion or overuse of a person’s bank card.  In majority of cases, the financial abuser will be a family member or a close friend.  LPA’s are not monitored regularly when compared to a court appointed deputy which opens up the possibility of financial abuse. 

A deputy is a person appointed by the Court of Protection for someone who has lost capacity but does not have an LPA.  Deputies are supervised by the Office of the Public Guardian and must provide annual accounts.  They must also have a security bond in place to safeguard the person who lacks capacity.  If financial abuse takes place, these sums can be recovered from the bond.

There are disadvantages to waiting until a deputyship application needs to be made.  Applications are costly and timely.  The Court of Protection is currently suffering severe backlogs as a result of the COVID-19 pandemic and staff shortages.  This has led to applications taking on average 9 to 12 months to be issued.  It is hoped that the new online procedure for applications relating to property and financial affairs will reduce these timescales. 

In order to protect against potential future abuse, it is essential to choose your attorney wisely. Restrictions can be put in place when you create your LPA to help reduce the possibility of abuse. Appointing more than one attorney can also provide a check and balance.  If someone is suspected to be a victim of financial abuse or it seems that their financial affairs are not being properly managed by an attorney, there are steps that can be taken to remove that person as an attorney or require them to be monitored by the Court of Protection.  On balance, we firmly believe that an LPA gives you control over what might happen in the future.  Our specialist lawyers will advise you on all aspects of dealing with your own or a loved one’s affairs including LPAs, deputyship applications and other applications to the Court.