New Power of Attorney will put people at risk

Changes in the law affecting the appointment of Powers of Attorney could leave thousands of people vulnerable to financial exploitation, according to legal experts. From 1st October 2007, a new Lasting Power of Attorney (LPA) will come into force with the view to offering people suffering from dementia greater financial, legal and health protection. The Alzheimer's Society estimates that more than 700,000 people in the UK suffer with dementia and around 60,000 deaths per year are directly attributable to the condition. Leon Swerling, an associate at national law firm Lewis Hymanson Small, comments: "The LPA will be more complex, expensive and onerous to put in place. This is likely to deter people from making one. This would leave them with little influence or control over decisions made about their assets should they become mentally incapable." Currently, many people protect their financial and legal rights by making an Enduring Power of Attorney (EPA). Under an EPA, a person appoints one or more people to manage their affairs during ill health. Sometimes an EPA can be used when a person is still in good health. LPAs will completely replace Enduring Powers of Attorney. In addition to covering financial matters, LPAs can also deal with health and welfare. However, an appointee under a LPA will not have the right to demand certain medical treatment if doctors are in disagreement. EPAs made before the end of September, when the Mental Capacity Act 2005 comes into effect, will remain valid. Swerling concludes: "If people do not opt to make a Power of Attorney, a receiver can be appointed to take care of their financial affairs if they suffer from dementia. This is done through the Court of Protection and can prove time consuming and expensive. "There are over 100 different types of dementia and experts predict that the number of people suffering with dementia will increase by around 40% by 2025. It is important that people take steps to protect their interests to ensure that decisions made on their behalf during ill health, are the decisions taken by those who they trust. "There is still opportunity for people to make an EPA under current rules, which will continue to offer protection after the law changes on 1st October 2007."