Lasting Power of Attorney (LPA) is the simple matter of being prepared for your future places less stress on your family and loved ones. Knowing that your wishes have been followed to the letter. This is why is is useful to have an up to date will.
But what happens if you are unable to communicate your wishes effectively in later life?
Your capacity and ability to process the complexities of life when you are not so well can be a daunting thing. You can never plan for when your capacity will become diminished. Having a plan in place to enable a family member or a loved one to advocate for you during difficult times can help.
This is exactly what Lasting Power of Attorney is for. LPA enables a person whom you elect to have legal authority to make decisions on your behalf. Should you be rendered unable to make or communicate your own decisions.
Using an LPA, you can appoint people you trust to make decisions for you. Without an LPA there could be some difficulty in helping you with your affairs. Important decisions that includes your home, financial and medical situations are quickly made by your delegated ‘attorney(‘s)’.
On a basic level Lasting Power of Attorney, empowers people to get you the support and care you need as quickly as possible while still maintaining your wishes. There are two different types of LPA:
LPA - Property and Financial
This allows you to nominate those you chose to act on your behalf to make decisions about your finances and property. They can organise paying your bills, managing your bank account(s) and pensions. This can include selling your home on your behalf if necessary.
LPA - Health and Welfare
Using this type of LPA your attorneys can make decisions about your health and welfare, which may include deciding where you live and agreeing with your medical treatment. This type of LPA is only used if you are unable to make decisions yourself.
Remember, it’s important to seek independent advice when considering an LPA to understand all the implications fully. It’s also worth noting that the process of registering an LPA can take up to 20 weeks1.
A Lasting Power of Attorney (LPA) is a legal document that allows a person (the ‘donor’) to appoint one or more people (known as ‘attorneys’) to make decisions on their behalf should they lose the capacity to do so themselves1. Here are some implications of having an LPA:
Peace of Mind: Having an LPA gives you peace of mind, knowing that someone you trust will make decisions on your behalf and in your best interests2.
Choice: With an LPA, you have the ability to choose who handles whatever situation arises2.
Protection: An LPA is a crucial financial protection, probably more important than a will3. If you lose your faculties, your finances can be locked away without anyone being able to touch it. To get it, they’ll need to apply via the Court of Protection or equivalent, which can be a hassle, long, and costly3.
Responsibility of the Attorney: As an attorney, you must follow any instructions the donor included in the LPA, consider any preferences the donor included in the LPA, help the donor make their own decisions as much as they can, make any decisions in the donor’s best interests, and respect their human and civil rights1.
Joint Decisions: If there are multiple attorneys, the LPA will specify whether decisions must be made ‘jointly’ (all attorneys must agree) or ‘jointly and severally’ (decisions can be made together or individually)1.
LPA is not the end...
Just because there is a Lasting Power of Attorney in place. It does not mean this is the end of your decision making journey. As long as you have capacity you can revoke an LPA if it is no longer required. There are also other circumstances when a Lasting Power of Attorney can end:
- Your attorney dies
- Your attorney loses the ability to make decisions – i.e. ‘loses mental capacity
- If your attorney is your spouse or civil partner and they divorce you or end the civil partnership
- Your attorney is removed by the Court of Protection
- If your attorney becomes bankrupt or subject to a Debt Relief Order (DRO), your property and financial affairs LPA may also be brought to an end.
- Your LPA will end automatically when you pass away. Your affairs will be looked after by your executors or personal representatives from that point, not your attorney. Making having an up to date Will, imperative.
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How we can help?
At Retirement Solutions, we understand the importance of planning your estate and making sure your needs and wishes are met. We have extensive experience in dealing with complex financial matter during retirement and later life. Our experts are ready to listen to your needs over the phone and help you understand what is required to delegate Lasting Power of Attorney. If you were to choose to go ahead with one of our estate planning products they are subject to fees.
