What is a Lasting Power of Attorney and The importance of having one in place.
A Lasting Power of Attorney (LPA) is a legal document that gives a specific nominated person or people the authority to make decisions as if they were you should you lose mental capacity. Those nominated are known as your attorneys.
Types of LPAs
There are two types of LPAs, you can either do both or just one:
1. Property & Affairs – This LPA allows your attorneys to make decisions about your property and finances which include your banks, investments, and pensions.
2. Health & Welfare – This allows your attorney to make decisions about your health and care.
Who can make an LPA?
Anyone who is over the age of 18 and still has mental capacity.
Most people think that LPAs are for older people when they have dementia. However, younger people do have accidents or illnesses where they become mentally incapable of making decisions. This is when an LPA would be required.
How long do LPAs last for?
LPAs are in place up until the day that you die unless you decide to revoke them.
Why are LPAs important to have?
Even though it is not nice to think about, if you were to lose mental capacity and did not have an LPA in place, your spouse, children or other relatives would not be able to go into the bank and access your money, even if it is to pay for things which you need such as food and care fees.
Who should I choose as my attorney?
We always say that whoever you choose must be someone you trust and should be considered very carefully, as they will make decisions for you and deal with your money, health and welfare. An attorney has a lot of responsibility, and so you should always speak to them to make sure they understand what their role will be.
What happens if I don’t have an LPA in place?
If you lose mental capacity and don’t have an LPA in place, your relatives will have to apply to the Court of Protection for a Deputy Order for Property and Affairs. This process is extremely time-consuming and expensive compared to making an LPA. The Court of Protection rarely makes an order for Health and Welfare, which means the local authority will be the main decision-makers regarding this.
What should you do next?
Talk about it with your family and if you feel as though you have any further questions or would like to make an LPA, please get in touch with one of us in the Private Client Team.