The Office of the Public Guardian has announced its strategy to protect vulnerable people who have signed over financial control.
The OPG, the government office which manages lasting power of attorney, said it wanted to become an important safeguarding partner that protected people who lacked mental capacity and had nominated an LPA.
An LPA can make decisions on behalf of someone else in cases of lost capacity. Powers can include paying bills and handling financial decisions as well as medical, health and welfare choices.
Last week, FTAdviser reported that the rise in those nominating power of attorneys are led to concerns over their misuse.
The number of people signing over financial control had more than tripled in the past five years and but the number of applications to the OPG to remove or censure attorneys increased by 71 per cent from 2016/17 to 2017/18.
The office said part of its new strategy to protect such people would include working more closely with safeguarding partners, such as adult social services and the NHS, to help them understand the OPG’s role more and look for ways to work together more successfully.
It would also enforce a ‘no wrong door’ approach to safeguarding, meaning the office would not ignore signs of abuse or neglect and listen to all safeguarding concerns.
The OPG said it believed all adults over the age of 18 should make an LPA so someone they trust can make decisions for them in case they lose mental capacity.
In order to do this, the government body said it would improve online services to make applying for an LPA easier and more accessible and run a national awareness campaign to encourage more people to plan for their future.
Commenting on today’s announcement from the OPG, Quilter's tax and financial planning expert Rachael Griffin said: “The OPG has a big responsibility for managing and administering applications for enduring power of attorney and lasting power of attorney.
“These are becoming increasingly critical tools for managing financial affairs into later life, allowing individuals to grant control of certain affairs to a trusted family member or friend if they become mentally incapacitated, typically through age-related mental illness.”
Ms Griffin said although the popularity of LPAs had skyrocketed they came with risk and could be subject to abuse.
She said: “There have been cases where vulnerable individuals have been targeted by scammers seeking to fraudulently take control of their assets.
“By falsely obtaining power of attorney, unscrupulous individuals have attempted to manufacture the appearance of genuinely looking out for the best interests of an elderly or vulnerable individual, when in fact they have other motives.”
Ms Griffin added that anyone considering appointing a power of attorney should remember the decision is one to be taken with great care and as a precautionary measure.
imogen.tew@ft.com
