Why make a Lasting Power of Attorney?
Making a Lasting Power of Attorney (LPA) is a very helpful act which will ensure that someone you trust will have authority to deal with your property and financial affairs and enable them to make decisions regarding your personal welfare should you lose the mental capacity to make those decisions yourself.
Regardless of health everyone should consider making an LPA. People can lose capacity at any age through accidents, mental health problems, neuro disability, dementia, alcohol, strokes or comas.
One way of looking at LPAs is like an insurance policy. You hope that you never have to rely on them. However, if the worst happens, you have piece of mind that you have done everything in your power to make your loved ones’ lives as easy as possible and have confidence that the people you trust most will be the ones making decisions about your life, on your behalf.
Types of Powers of Attorney
LPAs are documents whereby you (“the Donor”) give one or more people (“Attorneys”) authority to make decisions on your behalf.
There are two types of LPA:
(a) Property & Financial affairs LPA- this allows you to choose one or more Attorneys to look after your finances.
In this document it is possible to limit the authority to deal with certain assets.
Generally an Attorney will make decisions relating to:
- Investing your money
- Buying or selling property
- Paying bills
- Arranging repairs to your property and insurance
(b) Health & Welfare LPA - this allows one or more Attorneys to make welfare and health care decisions on your behalf.
Your Attorney(s) can only act when you lack capacity to make such decisions for yourself such as :
- Whether to consent to certain type of medical treatment
- What kind of social activities you take part in
- Where you would live
- What you would eat (for example you may wish to follow a vegan diet)
- Giving or refusing consent to life sustaining treatment
Both types of LPA can be cancelled at any time while you still have mental capacity.
Your Attorneys
The choice of Attorneys is crucial. You should ensure that your Attorneys are people that you trust entirely. They have the power to run your day to day life.
The people you appoint as your attorneys should:
- Be completely trustworthy
- Have your best interest at heart
- In the case of a Property and Affairs LPA are honest and good at organising finances
Ideally you should appoint at least two attorneys, just in case an Attorney dies or becomes incapacitated after you have become mentally incapable and you are consequently unable to make another Lasting Power of Attorney.
Who can you appoint?
You can appoint any one or more people over the age of 18.
If you appoint more than one Attorney: you should state whether they should act together (jointly) or together and separately (jointly and severally).
In addition you may choose to appoint a successor (“Replacement”) to your Attorney in case he/she dies or otherwise cannot act for you. If you wish to do that you will need to decide which Attorneys they will be replacing.
A Financial LPA can be used both when you have capacity to act as well as when you lack mental capacity to make a financial decision.
The Health & Welfare LPA can only be used if you lack mental capacity to make a welfare or medical decision for yourself.
What would happen if you had not made a Lasting Power of Attorney for Property and Finance:
If as a result of illness or following a serious accident you became mentally incapable someone would have to apply to the Court of Protection to look after your finances and ask to be appointed as your “Deputy”. This is costly (both initially and on an annual basis thereafter) and time consuming and you will not be in a position to choose who that person should be. Unlike a Will, a Property & Affairs Lasting Power of Attorney covers your financial affairs whilst you are still alive. Your Will only takes effect when you die. Many people make a Property & Affairs LPA at the same time as they make a Will.
Regardless of health everyone should consider making an LPA. Anyone over 18 can grant an LPA - you don’t need to be unwell!
If you have not already done so please contact us to arrange an appointment to suit you.
