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Notes taken from the Society of Will Writers bulletin dated 9th March 2011:
The introduction of Lasting Powers of Attorney was largely led by a desire to prevent the abuse of vulnerable people in respect of their financial affairs and to alleviate the problems that were encountered under the previous Enduring Powers of Attorney.
LPAs saw a significant amendment to the system of giving authority over financial affairs (and with personal welfare) to provide more protection to the donor. The new system allowed for checks to be made at the time of creating the LPA, via a certificate of capacity, and at the time of registration, by having named persons to be informed of the pending A 55 year old man has recently been sentenced to 15 months in prison after using an LPA to steal from the donor. In court the man admitted to stealing £48,154 from the elderly lady who had trusted him with her finances and a further charge of stealing £64,026. The judge in the case was satisfied that a ‘genuine’ friendship’ had existed between the parties but that the authority given by the LPA had been abused by the Attorney. The elderly woman suffered from senile dementia and the theft was only discovered when it was found that there was not enough money to pay for her care home fees. This highlights the need for the Court of Protection to keep a continuous check on Attorney’s actions to ensure that they are always acting in the best interests of the donor. At the time of making the thefts the Attorney was not aware that him and his wife were beneficiaries under the donor’s Will. This is now being changed by the Court of Protection. The abuse of power granted by an LPA is not limited to financial affairs. An attorney appointed under a Health and Welfare LPA has recently had his position revoked by the Court after it was decided that decisions he made in relation to his brothers medical treatment were not objective enough. The advice that you give to clients regarding their choice of Attorney is important. The role of an Attorney means that they have control over large aspects of the donor’s life and is not a position |
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