Published on: 13th September 2016

We are living for longer! Here's why it's vital to make a LPA sooner rather than later

According to the World Health Organisation, by just 2020 the number of people aged 60 years and older will outnumber children younger than 5, and between 2015 and 2050 the world's population over 60 will nearly double from 12% to 22%.

People across the globe are living longer and for the first time in history, the majority of the population can expect to live into their 60's and beyond. It is predicted that by 2050 the world's population aged 60 years and older may total to 2 billion, compared with just 900 million in 2015. A whopping 434 million people in this category will be 80 years or older.

Whilst these can be positive statistics, the aging population does mean there are more challenges, especially in the field of mental capacity and caring for elderly parents. Adult children already face a lot of issues when caring for aging parents as the parent-child relationship roles can often reverse.

The most common mental impairment in elderly people by far is dementia. Dementia is the term we use to describe different brain disorders that trigger a loss of brain function. These conditions are usually progressive and can eventually be severe.

Ahead of cancer, stroke and cardiovascular disease, dementia is one of the main causes of disability later in life.

There are 850,000 people in the UK who currently have dementia (according to The Alzheimer's Society), which translates to 1 in 6 people over the age of 80 suffering from it. There are also 40,000 people in the UK under 65 with dementia.

With the number of people living for longer years increasing, the amount of people with dementia is set to rise to over 1 million by 2025 and 2 million by 2051. This makes it vital for families to start planning for the future early. Encouraging parents or loved ones to set out exactly what they wish to happen in the case they lose capacity and making the correct arrangements can save everyone time, costs and a lot of worry and stress in the future.

Mental capacity

Mental capacity is being able to make an informed decision based on understanding a given situation, the options available, and the consequences of the decision.

People should always be supported to make their own decisions if they can do so - just because a person is unable to make one decision this doesn't mean they cannot make others.

The Mental Capacity Act 2005 states: Every adult, whatever their disability, has the right to make their own decisions wherever possible. The act protects people over the age of 16 around decision-making.

Future planning

With the aging population growing, the risks that a parent or loved one will eventually lose their mental capacity are increased. In these circumstances, usually a trusted family member will need to make decisions on their behalf.

Lasting Power of Attorney (LPA)

A LPA is a way of giving a person the legal authority to make decisions on behalf of another person if they are unable to due to lacking the mental capacity at some point in the future, or if they don't want to make decisions for themselves any longer.

A person must have mental capacity to set up a LPA.

There are two types of LPA:

1. A health and welfare LPA - for health and care decisions
2. A property and affairs LPA - for financial decisions

A health and welfare LPA covers decisions about healthcare and personal welfare, and can only be used once a person has lost their capacity. Matters include:

• Where the person should live
• Medical care
• What the person should eat
• Who the person should have contact with
• What kind of social activities the person should take part in

A property and affairs LPA covers decisions about property and finances. This can be used whilst someone still has mental capacity, but it is always considered that wherever possible a person should be encouraged to make the decisions themselves. The LPA can make decisions on matters including:

• Buying and selling property
• Paying bills
• Paying the mortgage
• Arranging repairs to the property
• Investing money

It is possible to restrict the types of decisions an attorney can make or they can make all the decisions.

Deputyship orders

If a person loses capacity before they have put a LPA in place, an appropriate person can apply to the Court of Protection to become someone's deputy. This means they will be authorised by the Court to make decisions on behalf of that person.

A deputyship application compared to having a LPA already in place can take much more time and be considerably more expensive. The Court also often charge an annual supervision fee which can range from nothing to £800. The most common supervision fee for a deputy looking after an elderly relative is £175.

To conclude

Planning now for your own future and encouraging loved ones to do the same will save everybody a lot of time, money and stress in the long run. Deputyship orders can be costly, especially if they are contested due to family members not being able to agree on who is appointed.

Have the conversation early, do not leave it until it is too late.

To find out more about LPAs and to request a home visit from us, click here.

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