Deciding on LPA

[PuzzledObserver]

DH and I are recently retired and in good health. We have no children - but an abundance of nephews and nieces - 2 on his side, 8 on mine. They are geographically scattered - none live anywhere near us.

After some thought, DH has picked one of his nieces - the one who is more organised and decisive - to act as his attorney, and she has agreed. This would be jointly and severally with me, the idea being that I would look after things as long as I am able and she would step in if I’m not.

On my side, there are more to choose from. I have narrowed it down to 3, with whom I have an adult to adult relationship. One lives about 3 hours away by train - she is coming to stay in a few weeks, so we can discuss everything. The other two live on the Channel Islands and they both work in finance - one of them corporate, the other private client investment.

I have established that you don’t need to live in the UK to act as an attorney, so the channel islanders could act. I was wondering about setting up the health and welfare LPA with DH and the niece on the mainland as attorneys, and finance with DH and the channel islanders. But does it make more sense to have the mainland niece on the finance one as well, so that she can pay the bills for the care home? But with the channel islanders taking the lead on managing investments.

Is it too much to have 4 attorneys for finance: DH, mainland niece plus two channel island nieces? My mother has my 3 sisters and me as her attorneys for health and welfare, but only two for finance.

Yes. Making decisions would be awful! One each for everything. It’s not a wedding cake to split into segments . Don’t over complicate. If you, for example, have to go into a home because you have dementia, how is anyone in the Channel Iskenderun going to choose the home? Just far too difficult or fair.

That’s why I was only going to involve the channel island ones in finance, not welfare.

So mainland niece would manage care needs, and channel island niece(s) manage finance.

Originally we were just going to have one another as attorneys, till the solicitor we were talking to at the time suggested including one from the next generation. IOW, it’s all very well appointing DH as my attorney, but no help if he either lacks capacity himself or is dead.

Welfare and finance tend to be linked though. We have same for both. Mum has just me for both. Too many cooks etc…. The attorney must act for you. Your wishes. Other half is out of the question due to age. You have responsibility for each other before you or DH use a LPA. It’s what being married is all about. Why do you need people as LPAs who are on different sides of the family? You choose the best people who are willing to do it. It can, potentially, be a lot of work so get someone who is up for it.

You would appoint attorneys and if the attorneys cannot do it, replacement attorneys.

You can be attorney for your DH and your DH can be attorney for you. It is only if the spouse cannot take on the role (because they have also lost capacity) then it will fall back on the replacement attorneys. The replacement attorneys would be the people you suggested but I agree with others to keep it simple. It is more work for the replacement attorneys to get a consensus if you appoint them to act jointly (i.e. they must all agree) unless you appoint them jointly and severally, in which case any one of them can act.

I would use the same attorney for finance and for welfare as they overlap (welfare judges it’s time for a care home, finance disagrees with the fee level, stalemate)

I would not use anyone in the Channel Islands because it seems an unnecessary complication. At the point the LPA would be used, you aren’t looking to make mega returns on smart investments but to spend accumulated money wisely on house repairs or whatever. So better if the attorney is in the same legal and financial system.

Thanks for all input.

I agree that you’re not looking to make massive return with smart investments etc, but at the same time you don’t want it sitting in an account earning buttons when with just a small amount of effort it could be earning a lot more.

While attorneys must act in my interests, ultimately it would be in their interests to ensure a good return, as they are the eventual beneficiaries of our estate.

The Channel Island nieces could always (if they agree)) give advice to the mainland niece about where to place money, without actually being attorneys themselves.

Re having attorneys from different sides of the family - perhaps I wasn’t clear. DH will have me and one of his nieces as his attorneys. I will will have DH and one (or maybe more, but now probably not) of my nieces as my attorneys.

If DH loses capacity, I look after his affairs - unless I can’t, at which point his niece steps in. Same if I lose capacity - he looks after things, unless he can’t, then my niece steps in. So if we are both without capacity but still breathing, then his niece looks after his affair and my niece looks after mine. I hope they put us both in the same home!

What is the practical difference between having an attorney, with a reserve attorney….. or two attorneys who can act jointly and severally? In practical terms, I mean.

Your attorneys are not supposed to have consideration of their own interests when managing your money.

My mum’s IFA said we should do any investing in accordance with what she would do, not what we would do. So she is on his books as a Cautious investor and my dad as a Moderate investor. On this basis, the IFA noted there were certain investments that he could switch dad’s but not mum’s money into (in the end, we left them as they were).

You could express a preference on the LPA that the niece on the mainland consults those in the Channel Islands re investments if reasonably possible, or similar wording. And both you and DH can put in your preferences that you would like to be in the same care home if possible.

Do put everything in joint names so you or DH control everything. House, bank account, pensions, savings etc. If neither of you has capacity, the attorney takes over. Check what decisions need to be made by the attorney in your individual cases. (Age UK has good advice).

I also agree an attorney makes decisions in your interests, not theirs. So not spending money on you by saving it for themselves, is not acceptable.