Lasting Power of Attorney - What You Need to Know
What is a Lasting Power of Attorney?
A Lasting power of attorney is a legal document whereby you appoint someone whom you trust (your Attorney) to make decisions and act on your behalf during your lifetime regarding your healthcare and finances.
It is important to understand that your Spouse, Civil Partner, children or next of kin do not automatically have any legal authority to handle your financial or personal affairs. You can only grant this legal authority by appointing them to act under a Lasting Power of Attorney.
Types of Lasting Power of Attorney (LPA)
There are two different types of Lasting Power of Attorney:
Property and Affairs LPA: allows your Attorney to make decisions and act on your behalf in relation to your property and financial affairs generally. Actions can range from simply telephoning the bank, to the sale of property if necessary.
Personal Welfare LPA: allows your Attorney to make decisions about your personal welfare such as where you live, medication, what you eat, who visits you and possibly giving or refuse consent to medical treatment. Your attorney can only act on your behalf when you have lost the capacity to make such decisions for yourself.
It is recommended to make both types of LPAs to ensure you are prepared for the most difficult of circumstances, such as needing to go into residential care. In this situation, someone would need access to your finances to pay fees, and to be involved in the preparation of care plans, decisions about where you live, etc.
When should you prepare a Lasting Power of Attorney?
Many people mistakenly assume that a Lasting Power of Attorney is a consideration for later life when they are losing mental capacity. However, anyone at any age can have an accident or illness affecting their capacity. The benefit of making an LPA now is that your Attorney(s) will be able to step in and act on your behalf without delay.
If you do not have an LPA and you become mentally incapable, it is too late to prepare a Lasting Power of Attorney. Instead, an application must be made to the Court of Protection for the appointment of a Deputy to manage your financial affairs and make decisions on your behalf.
How can Barwells help?
Although LPAs are commonly considered to be “just forms filled in on-line” they are in fact important Legal Deeds which significantly impact your life. In many ways preparing LPAs are just as important as a Will, as LPAs are used while you are alive and a Will comes into effect when you pass away. .
Professionally drafted LPAs are tailored to suit your individual needs and to reduce the likelihood of needing to prepare a Deed of Revocation or new LPAs when you find out that the LPAs do not cover your needs. Almost one in ten LPA applications are rejected due to errors. Therefore, using a professional who has extensive experience in drafting LPAs reduces the possibility of rejection for errors. Most importantly a professional drafter will ensure that your LPAs are made to last beyond the very immediate future.
If you would wish for some further information or advice, please contact our private client team.
Blog by Joanna McCarthy
