Caring for a loved one with dementia can be overwhelming, especially when it comes to managing their finances. Unfortunately, most banks and building societies have strict rules in place when it comes to tracking spending, setting limits, or blocking someone else’s card. This means that a legal power of attorney is necessary to ensure that the finances are being managed in the best interest of the dementia patient. On top of this, as dementia progresses, the affected individual becomes more susceptible to financial fraud over time.
New Financial Solutions for Dementia Patients
Innovative solutions such as the Sibstar debit card (in partnership with Mastercard and the Alzheimer’s Society) are making strides in helping those with early-stage dementia maintain some control over their finances. The card enables customers with dementia to appoint a ‘supporter’ who will have joint control of managing spending on the Sibstar app. This supporter can monitor spending, set limits, and freeze the card if necessary.
However, it is important to note that there is an ongoing charge of £4.99 per month and a one-time set-up fee of £4.99. This service is also app-based, which may not be suitable for elderly clients who aren’t tech-savvy. Additionally, it isn’t clear how many supporters can access this service. If it’s limited to one, this could cause issues where there is more than one family member available. In such cases, a lasting power of attorney (LPA) can provide more choices and provide replacements should something happen to another attorney, offering more security.
While this solution is beneficial, it may not be sufficient for families dealing with advanced dementia cases. That’s where the importance of a lasting power of attorney comes into play.
The Importance of a Lasting Power of Attorney (LPA)
An LPA is a legal document that allows a person (the donor) to appoint one or more individuals (the attorneys) to make decisions on their behalf when they are no longer able to do so or decide they don’t want to. Two types of LPA are available – Property and Financial Affairs LPA, and Health and Welfare LPA. For individuals with dementia, an LPA is crucial in ensuring that their finances and welfare are managed in their best interests. This provides peace of mind for both the person with dementia and their family, knowing that there is a trusted person with the legal authority to make important decisions on their behalf.
The LPA Process
Setting up an LPA requires the donor to be over 18 years of age and mentally capable of making their own decisions. The process involves selecting a trustworthy attorney or attorneys who understand the donor’s wishes. LPA forms can be obtained online or from a solicitor. The donor, attorney(s), and a certificate provider (a person confirming the donor understands the LPA and is not under pressure to create it) must sign the forms. The LPA must be registered with the Office of the Public Guardian (OPG) before it can be used. There is a registration fee, but exemptions and reductions are available for those on low incomes or certain benefits.
Getting support
If you’re considering setting up a lasting power of attorney for a loved one, or have any questions about the process, our compassionate solicitors are here to help. Give us a call at 0161 969 3131 or fill out our contact form to discuss your unique situation and explore the best options for protecting your loved one’s interests.