A leading Leamington law firm is warning that a change in the law could cost the public money.
The new Mental Capacity Act, which comes into force in 12 months, will change the way people can appoint someone to look after their financial affairs should they become mentally incapable.
Wright Hassall has estimated that the change could mean increased costs of up to £200-£250.
John Rouse, a partner in the Wills, Trusts & Tax department, said: “At the moment anyone can appoint an attorney to deal with their financial affairs. If the person becomes mentally incapable, the Enduring Power of Attorney is then registered with the court. Until that time there is no requirement to register it.
“But from next April an EPA will be replaced by a Lasting Power of Attorney. As well as giving authority over financial affairs, the attorney will also have authority to make welfare decisions. Such wide power may act as a disincentive to making a Lasting Power of Attorney.
“Before the Lasting Power of Attorney can be used for financial purposes, it will have to be registered at the court even if you are perfectly mentally capable.
“Solicitors across the country estimate that the court registration fee will cost around £120-£150 but LPAs are also more complicated documents and as a result are likely to cost more to draw up. Final details are still to be confirmed following the end of the consultation process.
“It is a simple case of a potential change in the law costing the consumer more money and it is certainly in their interests to act this year.”
