Power of Attorney (financial) - what are the benefits?

[FruHagen]

So I am struggling to explain with real world examples to my elderly Mother (who we think has early stage dementia) the reason for her giving Power of Attorney (financial) to me and my 3 siblings.

I just can't come up with any compelling examples for her to understand what it is and why it's necessary. I have told her it means that people she loves and trusts can speak to financial institutions like the bank etc on her behalf but she just says "why the hell would I want you to talk to the bank for me. I'm not ga-ga"

Can you lovely people enlighten my poor imagination with some examples of why this matters?

Moonstone I agree it's a pain receiving cheques! A whole new job of getting them paid in. Not surprised your elderlies weren't good at that.

I have LPA finances and property set up for my parents, who are FAR from
Needing it yet. I don't know any professionals in the field of social care or health who wouldn't think this is a good idea.

You don't need to use it on their behalf, until they no longer can manage their money, but if already set up it stays dormant for years -but you can use it if they ask you to step in for them with their consent on specific things whilst they do have capacity- and they've effectively told the state who they trust to ensure their bills are paid and lives can be led when they can't pay for things.

The alternative is should parent have a stroke or serious health episode affecting their memory, no one has legal authority to manage their money.

It can take 4-12 months to get deputyship in finances (which is what you apply for after capacity has been lost). Far more expensive and all that time none of their bills (not already on DD) are being paid (no cheaper ultilities can be sought, ultilities can over charge you with no one able to complain) and they could be wracking up debts cut off etc with no one lawfully able to step in whilst waiting for legal deputyship.

It is very sensible and inexpensive set LPAs up early in readiness to be used by trusted relatives or friends when you may need it.

If they never do need it, they haven't lost anything and nothing will change as they stay in charge of their money and assets, as they have capacity to do so, you only step in to do what they would want if they lose capacity.

Remind them to do 'joint and severally' LPA (never ' joint but not severally'- that's a nightmare in practice) if they have more than one person named as an LPA.

Also it is auditable by Office public guardian, so you have to act in their best interests.

Any professional that has known them for 2 years or even a neighbour can do independent the sign that they understand POA. It means the opposite that "something is wrong" it's sensible financial planning and shows that they are okay and understand, not that they don't!

Tell her it's not about going ga ga, so she needn't be embarrassed about asking her friend. My mum has all her marbles, and is probably sharper than me. But she is paralysed after a stroke, and can't use a computer.

My brother and I have POA, so can do all the stuff that requires her presence, or a legible signature. She can call the bank or other institutions, but is unable to make notes on the conversation or record details that they might ask her to write down, so often if she's called them she'll all one of us to follow up the call.

It's not just old people taking out LPAs either. A bunch of us at work took them out after seeing that one of our colleagues went through after her relative had a stroke. We were all witnesses for each other, and some of us were in their 40s.