Many individuals understand Lasting Powers of Attorney and their necessity, but misconceptions still exist about their purpose and application. It is important to clarify these misunderstandings so you can make informed decisions for yourself and your loved ones.
Firstly, think of a Lasting Power of Attorney (LPA) like an insurance policy - you hope that you'll never need to use them, but it is better to have them ready just in case. We would always recommend seeking the help of a legal professional when making an LPA and we have many years of experience dealing with these matters.
Emma Beckett, Solicitor in the Wills & Probate Team at Jackson Lees, provides information about the important facts and common misconceptions of a Lasting Power of Attorney.
What is a Lasting Power of Attorney and why do I need one now?
A Lasting Power of Attorney is a legal document that appoints individuals to make important decisions regarding your financial affairs or your health and welfare if you lose the capacity to manage them yourself.
A common misconception is that an LPA is only for those who lose their capacity due to a progressive condition, like dementia. However, anyone could be involved in an accident or suffer from other conditions that may impact their ability to manage their affairs.
To make a Lasting Power of Attorney, an individual must have the necessary mental capacity. Additionally, a third party is required to sign the document to confirm that the individual is capable of making such a decision.
If you have an accident or suffer from a condition that affects your ability to understand and/or communicate, you may no longer be able to make an LPA.
Unfortunately, we cannot predict the future, so we would recommend considering making Lasting Powers of Attorney regardless of your age. Without an LPA, your family would be required to apply for a Court Order through the Court of Protection to make any decisions on your behalf.
Not the same as a Will
A Will only takes effect upon death, whereas Lasting Powers of Attorney are used to manage an individual’s affairs while they are still alive.
While a lot of people appoint the same person to act in both documents, a Will does not appoint an Attorney on your behalf, nor does a Lasting Power of Attorney appoint an executor to deal with your estate when you pass away. It is important to set clear instructions to make sure your wishes are respected.
If you would like to learn more about Wills, Trust & Probate, speak to one of our experts today.
What are the different types of LPAs?
Understanding the different types of Lasting Powers of Attorney is crucial for ensuring that your affairs are managed according to your wishes.
There is a common misconception that you need only either a Health and Welfare LPA or a Property and Financial Affairs LPA. However, it is advisable to have both, as they complement each other.
A Property and Financial Affairs LPA can help an attorney make decisions about your finances and property, including managing accounts, paying bills or selling your house or other belongings. It is also essential if you have a joint account with a family member, as the account can become frozen if they learn that one party no longer has sufficient mental capacity.
- A Health and Welfare LPA allows your loved ones to decide on matters that affect your wellbeing, where you live and providing life-sustaining treatment if you lose capacity. Without it, social services will make these decisions if you cannot make them yourself.
If you would like to learn more about the different types of LPAs, speak to one of our experts today.
Protect your family’s future
While Lasting Powers of Attorney are certainly used so that someone is appointed to act on your behalf should you lose the mental capacity to manage your affairs, they can also be used if you’re physically unable to manage your affairs.
For some, they may simply wish to appoint someone to manage their affairs for them if they are going abroad for a long time and won’t be able to manage their finances while they’re away.
If you have bank accounts, investments, or property in your name and are deemed to no longer have the capacity, usually, the only way to access them while you’re alive would be for you or a loved one to apply to the Court of Protection for a Court Order.
This is far more time-consuming and costly than obtaining Lasting Powers of Attorney. You also get to choose who will manage your affairs, which would not always happen if it was taken to the courts.
Appointing an Attorney for an LPA can save time and money. LPAs can be close family members or friends but should be someone you can trust. It is important to keep in mind that spouses, civil partners and children cannot automatically make decisions should you lose capacity, they must be named and appointed correctly in an LPA.
Get in touch today.
If you would like to find out more about Lasting Powers of Attorney, our expert team is on hand to guide you through your options.
We can take you through the whole process, from preparing the documents to arranging registration with the Office of the Public Guardian, meaning your documents would be ready to use if needed.
For a free consultation with one of our Wills, Trusts & Probate experts, give us a call or make an enquiry.