Although LPAs can be very useful, there are certain issues that can arise from their use. Many of these can be avoided if you get the right guidance when creating your LPAs.
When a donor is ill or losing mental capacity, family members who have not been appointed as attorneys may attempt to file complaints on the donor’s behalf. This could be because they believe someone misled the donor, such as by miss-selling an investment. They may also object to the actions of the attorneys.
Other relatives may be dissatisfied with the attorney’s behaviour and file a complaint as a result. In this article, when power of attorney goes wrong, we take a look at these issues in more depth.
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Can the grant of an LPA be rejected?
Under certain circumstances, an LPA can be rejected. These include:
The order in which the form has been completed is wrong. A Lasting Power of Attorney must be signed and dated in a certain sequence. If one person signs and dates before another when they shouldn’t, the Office of the Public Guardian will notice (since the dates are out of order) and reject the document.
Too much time has passed between the various people signing. If one group of individuals signs the LPA and then there is a considerable period of time before the next group of people signs it, the OPG may reject it. While there is no set time limit for signing, they encourage that you do it within a few days of each other.
The LPA was challenged by someone. If you selected ‘others to be notified’ while filling out the LPA, they will have three weeks to express any issues about the document. The LPA will be rejected if they do.
Using limitations and conditions that are incorrect or incompatible. You can provide preferences and directions for your attorneys in your LPA. If the instructions are incompatible with the manner in which your attorneys can act (that is, jointly, severally, jointly and severally), the entire LPA will be rejected. For example, if you have designated your attorneys to operate jointly and severally, this implies they can act jointly or individually, and they must all be available to act at any time. So, if you have selected your attorneys in this manner, you cannot subsequently contradict it by stating that they must all act together on certain transactions.
Making provisions for gifts over which they do not have authority. Attorneys can make gifts to other family members on ‘customary occasions,’ such as birthdays or marriages, under the terms of an LPA. They cannot, however, provide presents to family members such as school fees, trust funds, or interest-free loans.
Requesting that attorneys represent someone other than yourself. You cannot specify in your LPA that your attorneys must act on someone else’s behalf. They only work for you.
In such situations, the Public Guardian’s Office will seek the donor’s permission to sever the arrangement. This simply implies that they will notify the applicant that the donor can either accept that the invalid request is eliminated entirely from the LPA or they will create a new LPA without or with a modified provision. Unsurprisingly, few people opt for the latter because they will have to pay the registration fee again. Accepting severance will expedite the application and save you or your attorney from having to go through all of the typical formalities again.
LPAs for pets can include instructions and preferences for pets, such as how you would like them cared for, but they are not legally binding. So you can’t ensure that your pet is cared for the way you want, but you can ask your attorneys to take your wishes into account.
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It is important for you to be well informed about the issues and possible implications of setting up a power of attorney. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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