“If You’re Drawing Up A Lasting Power Of Attorney, Take Professional Advice” Warns The Estate Registry
The Estate Registry (TER), which offers a range of end-of-life admin services, has expressed concern after organisations representing elderly and vulnerable people raised questions about the Government’s online tool for drawing up Lasting Powers of Attorney (LPA).
An LPA allows a person to appoint trusted individuals to make decisions on their behalf in the event of mental incapacity. Decisions about property, money, medical treatment and end-of-life arrangements can be included in the legally binding document.
The Government’s Office for the Public Guardian(OPG) launched its online tool in May 2014, which allows people to set up an LPA without the need for professional advice from a solicitor.
But a new report, published by a coalition of organisations led by the Association of Lifetime Lawyers, warns that there are significant risks of setting up such a document without specialised advice – errors in filling out the form could render it ineffective, additional application costs can be incurred and increased risks of becoming a victim to fraud or coercion.
Howard Enders, Chief Operating Officer at TER says: “We have long called for the increased use of digital death certificates, digital probate applications and improved end-of-life admin services to eliminate stress on bereaved families.
“However, the application of online LPAs is an entirely different issue. Elderly people who may be losing mental capacity are very vulnerable at that point. A vital part of a solicitor’s role is to provide advice and act as a safeguard to their client’s interests.
“There are important factors to consider when making an LPA and without legal advice, the document may not accurately reflect the person’s wishes in the way they expect it to.”
The Estate Registry offers a range of services designed to simplify end-of-life admin and estate management, including NotifyNOW, InheritNOW and LegacyNOW, as well as award-winning bereavement notification service, Settld.
Since the OPG launched its online service there has been a 35% rise in the number of applications for LPAs, with over 500,000 being registered in 2015/2016 alone. The latest target is for 30% of applications to be made digitally.
The perceived benefits of the online or an off-the-shelf system (available to buy) are primarily short-term financial. The Association of Lifetime Lawyers has outlined the results of its study into the different methods of drawing up an LPA.
That study found that in the first year of the online service 13,000 applications were rejected. Even with guidance notes, it is easy to make errors on the forms and it means that people may have to pay additional costs to resubmit.
If the application is accepted but contains mistakes, the LPA may be rejected in the future by financial institutions, utility providers and medical professionals. Rectifying an LPA after it has been drawn up is expensive and stressful.
The individual making the application may be more at risk of fraud or coercion. The document can be falsified due to the lack of a ‘wet’ signature, or they may be signing something they do not fully understand. A solicitor who sees and speaks to the applicant is able to make an assessment of the situation and of their capacity.
There are people for whom these risks are considerable, if their affairs are complex or if they lack experience of the legal process.
Participants in the study expressed surprise at the complexity of off-the-shelf DIY forms, the time taken to complete them and the use of legal vocabulary which they did not always understand.
The panel of solicitors reviewing the forms found some applicants had left the section “preferences and instructions’ blank. This is a key section of the document, outlining how applicants would want a legal attorney to act on their behalf.
When it came to the OPG’s online tool, despite being familiar with tech, participants commented that they found the form “overwhelming”. Many remarked on the seriousness of the questions, for which they were unprepared. They also felt that answering these questions with due consideration wasn’t really possible when filling in an online form, unless the applicant already had a very clear view of their wishes and the process.
Enders concludes: “An LPA is an important document and it’s essential to get it right. At TER we would advise anyone drawing up an LPA to consult a solicitor, who will go through it line by line and can explain what it means and the ramifications.
“If you’re considering applying for an LPA, it could be a false economy not to take professional advice to safeguard your interests in the future.”