Lasting Power of Attorney insurance
A Lasting Power of Attorney insurance has been introduced to provide better protection for those making LPAs.
When a client asks who they should appoint as attorney to look after their affairs, my usual first response is “appoint someone who you trust”. This advice of course still stands, but there is now an extra layer of protection for donors of Lasting Powers of Attorney (LPAs). A new security bond has been brought in, which can help to protect the financial affairs of the person who has made the LPA (the donor).
The Court of Protection have had mandatory bonds for court appointed deputies for many years but until recently there has not been an alternative for attorneys. Whilst not mandatory, a bond can be taken out either by the donor or by the attorneys. The bonds are essentially an insurance which protects the donor’s finances against dishonest actions or even honest mistakes, by attorneys.
Bonds last for the lifetime of the LPA and can help to provide reassurance to donors that their finances will be protected when they may not be in control of these themselves.
If you have any queries regarding security bonds for LPAs or regarding LPAs generally, please do not hesitate to contact us.
Rebecca Dixon is a solicitor in the private client department at Barker Gotelee, Suffolk solicitors.