Lasting Powers of Attorney (LPAs) are meant to be made by individuals, with capacity, to set out who they would like to deal with their finances, property and/or health decisions should they be unable to do so in the future. The finances and property LPA, in particular, is recommended for everyone as it can be used whilst the individual still has capacity, with their permission, but also if they then lose capacity.
LPAs have to be signed by the individual making them (the donor) and those they are appointing to act for them if necessary (the attorneys). There is also a certificate that has to be signed by a certificate provider which confirms the donor understands the document and is not being coerced. The certificate provider has to be an independent person that has either known the donor for at least two years or has the relevant professional qualifications.
The LPAs are then sent to be registered at the Office of the Public Guardian (OPG). This process should ensure that no donor is coerced or has had an LPA made for them against their will. However, the recent news story reported by the BBC shows that there are instances where LPAs have been made and registered without the donor even knowing about it!
The BBC article tells the alarming tale of a woman (Marie) who went to look after her mother, when the Covid-19 pandemic hit, leaving her flat empty. Marie was subsequently contacted out of the blue by the freeholder advising her that someone was trying to sell her flat.
It transpired that her ‘sister’ Julie had a registered LPA for finances and property with Marie as the donor and had instructed a conveyancing firm on the sale of the flat. Julie had provided the firm with a genuine LPA and ID documents, but they became suspicious and asked for proof of Marie’s lack of capacity. When Marie returned to her flat she found the locks had been drilled off and the property had been broken into.
The Office of the Public Guardian have confirmed that cases like this are extremely rare but they will be aiming further resources at checking potential fraud and abuse of LPA documents. This story highlights the importance of individuals putting LPAs in place so that they are registered and on record, if they are ever needed or if another LPA is attempted to be registered in their name. Do not wait until old age – they are documents recommended for everyone!
The fake sister, Julie, had presented the solicitors with a genuine lasting power of attorney document, showing she had the right to sell Marie's house, and requesting that the £280,000 from the sale be paid into a bank account in the name of Julie.
https://www.bbc.co.uk/news/uk-england-london-59476971?tceid=61a7604249b2040b108a7337
