Planning for the Unexpected

For many of us taking a break from dealing with our day to day finances might seem attractive at the moment! But just imagine what could happen if you did……

By not taking care of the simplest things life could get complicated and expensive. For example

Overlooking the need to organize that higher overdraft limit with the bank might cost you higher bank charges.

Forgetting to clear the balance on your credit card could cost you interest that you didn’t need to pay.

By missing the deadline for this year’s ISA you lose those tax benefits forever.

Failing to lodge your income tax return on time means you might have to work out your own tax, or pay someone to do it for you and might even cost you a fine.

Of course we tend not to worry about these things as even if it’s at the last minute we eventually get round to doing them.

But what if something happens that means these things won’t get done? An unexpected accident or illness could remove your ability to deal with the simplest matters, as can the simple experience of aging. The consequences cost not only money but worry and stress for your family.

A Lasting Power of Attorney (LPA) can avoid these problems. By getting one prepared and registered now you can ensure that someone of your choice will immediately be able to take things over so that at a difficult time routine money matters don’t become a major cause of distress.

The cost of not putting an LPA in place seems to be increasing. The alternative (an application to the Court of Protection) costs an initial £400 and takes approximately six months from start to finish. After that there is an annual return to complete, annual Court supervision fees and the Court will also require your family to take out a form of insurance which, on our experience in the last few months, can range from £125 to £450 per annum even when someone’s affairs are straightforward.

The Office of the Public Guardian is currently attracting a lot of press criticism for its delays and for rejecting requests to register LPAs.

At Neves however we are finding that if the documents are “right first time” then the problems being highlighted in the media can be avoided.

REMEMBER

• LPAs are not just for when we reach old age. While we are working our financial affairs tend to be more dynamic and the impact of losing mental capacity can have major consequences for our dependents
• If drawn up correctly and thoroughly LPAs can be for life!
• The alternative to a LPA is more costly, drawn out and therefore stressful for your family
• Use an expert

For a free consultation to determine whether a LPA would help you and your family contact Paul Ashby at Neves on 01582 725311 or 01908 304560.