Ask Jonathan: I'm concerned my elderly parents might not able to manage their finances. What could they do?

Your parents may already have taken steps in the past to deal with this situation by making an Enduring Power of Attorney or a Lasting Power of Attorney, as many people have.

An Enduring Power of Attorney is a Power of Attorney which gives somebody general authority to deal with their financial affairs subject to any restriction that person making it has placed on it.

It can be used by the Attorney as soon as it is made, and has the possibility of continuing to have effect, even if the person who made it loses mental capacity subject to registering the Enduring Power of Attorney with the Court of Protection.

Enduring Powers of Attorney can no longer be made as they were replaced by Lasting Powers of Attorney in October 2007.

However, if an Enduring Power of Attorney has already been made by your parents prior to that date, then they are still valid and may be registered.

If however, they did not make an Enduring Power of Attorney prior to October 2007, then it is possible for them now to make a Lasting Power of Attorney. Lasting Powers of Attorney come in two different varieties.

There is a Property and Financial Affairs Lasting Power of Attorney and a Health and Welfare Lasting Power of Attorney.

Both types of Lasting Power of Attorney can only be used once they have been registered with the Court of Protection.

Once however they have been registered, the Property and Financial Affairs Lasting Power of Attorney give the Attorney or Attorneys, very similar powers to the Enduring Power of Attorney to deal with the donors financial and property affairs subject to any restrictions.

This would be so whether they have or have not mental capacity.

The Health and Welfare Lasting Power of Attorney, is a new type of Power and can only be used if the Donor has lost mental capacity and this would enable the Attorney to make decisions on their behalf, such as where they should live and who they should live with and make decision concerning their day to day care, diet and dress and whether or not they should have medical treatment.

Your parents would need to make Lasting Powers of attorney while they can understand what they are doing.

If your parents were to lose mental capacity and not have made Lasting Powers of Attorney, then the alternative would be an application to the Court of Protection by you to be appointed as their Deputy.

Again Deputyship comes in two varieties. A Property and Financial Affairs Deputyship and a Health and Welfare Deputyship.

Readers who submit articles must agree to our terms of use. The content is the sole responsibility of the contributor and is unmoderated. But we will react if anything that breaks the rules comes to our attention. If you wish to complain about this article, contact us here