Changes on the Way
Victoria Sly
Significant changes to the way Lasting Powers of Attorneys are handled are expected later this year. Private Client Executive Victoria Sly takes a look at what is expected.
It has recently been announced that significant changes are likely to be made to the process of creating and the subsequent registration of Lasting Powers of Attorneys (‘LPAs’) and these are due to come into force this autumn.
During the course of the last year, more than a million new LPAs have been registered which has caused significant delays at The Office of The Public Guardian, the government body charged with registering the legal documents.
Currently the registration process is taking up to 20 weeks which can be a stressful time for individuals who urgently require assistance from their appointed attorneys.
In an effort to minimise the administrative burden on both Donors (being the individual creating the LPA) and The Office of The Public Guardian, the new legislation proposed by Stephen Metcalfe MP seeks to digitalise the creation of LPAs by way of an online system (as opposed to the current paper application) which should ultimately speed up the registration process by identifying any errors early on in the application process which can be dealt with online rather than as a paper exercise via the post.
Other benefits proposed are identification checks to be carried out on Donors and Certificate Providers to strengthen fraud protection and reduce abuse of vulnerable adults.
In relation to changes regarding the creation of LPAs online, it is anticipated that the Donor sets up an account, completes Form 1 and provides identification and payment. A code is then sent to the certificate provider who then in turn, completes Form 2. Once this is completed Form 3 is then sent to the attorneys for their signatures. From the information available, witnesses to signatures are intended to be dispensed with.
The advantages of the changes suggested invites Donors to complete documentation on-line, with reduced paperwork, more security and less risk. However, whilst there are many reasons to create LPAs, at whatever age, by their very nature that LPAs are more often created by the older generation who are mindful of the possibility of losing their mental capacity in later life. Donors do not always have internet access and prefer a paper application. In these circumstances, it is still important that Donors obtain the correct advice as to the choices available to them including the process, the appointment of attorneys, how they are to be instructed and who should act as certificate providers. In certain instances, more in-depth advice may be required regarding business interests and more complex investments.
