Why are lasting powers of attorney so important for care home residents?

Running a care home can be stressful - managing budgets and administration, keeping residents and their families happy and ensuring consistent ongoing care and support. This burden increases when a resident has an accident, becomes unwell or loses mental capacity. Who makes decisions on behalf of that resident? Who can the managers and owners of the care home turn to when a problem arises?

If the resident has a lasting power of attorney (LPA) life will be easier for everyone involved, especially the care home provider. A LPA allows a person to decide who they would like to look after their property and financial affairs if they do not have the mental capacity to do so. The LPA can also be used before a person loses mental capacity, and some residents of care homes ask their attorneys to manage their finances for them.

This is such a valuable arrangement it is surprising, perhaps, that more care homes do not encourage or even require residents to enter into a LPA. Once in place and registered, a care provider is able to deal directly with the resident’s chosen attorneys; ensuring that delays are avoided when immediate decisions need to be made and providing continuity of care through contact with financial institutions.

Without a LPA the care provider could be caught in financial limbo whilst the resident’s family applies to the Court of Protection to appoint someone to manage the resident’s financial affairs. If the family is unable to pay the fees in the meantime, the care home will be placed in a difficult situation. As well as using valuable administrative resources, a lengthy delay could place a heavy burden on cash flow and viability.

Care home owners are recommended to broach the subject of LPAs and authority before an individual takes up residence and care home residents and their families are encouraged to consider these vital issues long before any urgency arises.

A very important point to consider is that the person entering into a LPA must do so before they lose mental capacity. If a resident has been diagnosed with early onset dementia or Alzheimer’s they could still enter into a LPA, but a doctor may need to be consulted to confirm that they have capacity to do so. If a resident has a LPA that has not been registered, it cannot be relied upon. The registration procedure currently takes between two and four months and will only be available for the attorneys to use from the date of registration.

Birkett Long will visit your care home and give a free presentation on the benefit of LPAs for your staff, residents and their families. For this service, or for further information, contact Caroline Dowding on 01206 217394 or email caroline.dowding@birkettlong.co.uk

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