Most people understand the importance of making a Will. It ensures that your wishes about your estate can be followed after your death.
But what happens if you are still alive and suddenly become unable to make decisions for yourself?
Money Saving Expert founder Martin Lewis has recently highlighted the importance of having a Lasting Power of Attorney (LPA) in place, describing it as an essential document that many people overlook.
At Preuveneers LLP Solicitors, we regularly advise clients about LPAs and the protection they can provide for both individuals and their families.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you are unable to do so yourself.
The person making the LPA is known as the donor, while the person or people appointed to act for them are called attorneys.
An LPA can be particularly important if you lose mental capacity as a result of an illness, accident or other unexpected event.
Importantly, losing capacity is not something that only happens in later life. A serious accident, stroke or other medical event can happen at any age.
Why having an LPA matters
Without an LPA, your family may not automatically have the legal authority to deal with your finances or make certain decisions on your behalf.
For example, if you were suddenly unable to manage your affairs, your loved ones could face difficulties dealing with:
- Bank accounts and savings
- Investments
- Property and mortgage payments
- Household bills
- Insurance policies
- Paying for care
- Other financial commitments
This can create significant practical and financial difficulties for families at an already extremely stressful time.
In some circumstances, an application to the Court of Protection may be necessary before someone can be formally appointed to manage another person’s financial affairs. This can take time and involve considerable expense.
There are two types of Lasting Power of Attorney
Property and Financial Affairs LPA
This allows your chosen attorney to deal with financial and property matters on your behalf.
Depending on the authority you give them, this can include dealing with:
- Bank and building society accounts
- Bills and regular payments
- Benefits and pensions
- Property and mortgage matters
- Investments
- Tax affairs
- Buying or selling property
Health and Welfare LPA
A Health and Welfare LPA relates to decisions about your personal welfare and healthcare.
It can cover matters such as:
- Your daily care and routine
- Where you should live
- Medical treatment
- Care arrangements
- Life-sustaining treatment, where appropriate
This type of LPA can only be used when you lack the mental capacity to make the relevant decision yourself.
Don’t wait until you need one
One of the most important things to understand about an LPA is that it must generally be created while you still have the mental capacity to make the document.
If capacity has already been lost, it may be too late to simply put an LPA in place.
That is why an LPA should not be viewed as something reserved for elderly people. It can form an important part of an adult’s wider legal and financial planning at almost any stage of life.
An LPA and a Will do different jobs
A Will and an LPA should not be considered alternatives to one another.
They deal with different circumstances.
A Will sets out your wishes regarding your estate after your death.
A Lasting Power of Attorney helps ensure that trusted people can make decisions for you during your lifetime if you are unable to make those decisions yourself.
For many people, having both documents in place provides a much more comprehensive approach to planning for the future.
Get professional legal advice
Creating an LPA may appear straightforward, but choosing the right attorneys and deciding what powers to give them are important decisions.
If your financial affairs are complicated, you own property or businesses, have significant investments, or have particular concerns about future care or family circumstances, professional legal advice can help you understand your options.
At Preuveneers LLP Solicitors, we can advise you on preparing a Lasting Power of Attorney and help ensure that your wishes and interests are properly considered.
Don’t wait for an accident or illness to make future planning urgent.
Contact Preuveneers LLP Solicitors to discuss putting a Lasting Power of Attorney in place and protecting your interests for the future.
This article is intended for general information only and does not constitute legal advice. The law and applicable fees can change, so please speak to a qualified solicitor about your individual circumstances.
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