When people think about planning for the future, making a Will is often one of the first things that comes to mind. However, there is another important legal document that can provide valuable protection for both you and your loved ones: a Lasting Power of Attorney (LPA).
While a Will sets out what should happen after your death, a Lasting Power of Attorney helps protect you during your lifetime if you become unable to make decisions for yourself or simply want some help with implementing a decision you have made. Having an LPA in place can provide peace of mind, reduce stress for family members and ensure that important decisions can be made by people you trust.
No one likes to think about losing the ability to make decisions, but planning ahead in this way can make a significant difference for both you and your family.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney is a legal document that allows you to appoint one or more people, known as attorneys, to make decisions on your behalf if you lose mental capacity or are no longer able to manage certain matters yourself.
An LPA can only be created while you have the mental capacity to make your own decisions. Once it has been properly completed and registered, your chosen attorneys can act in accordance with your wishes and best interests.
Many people assume that their spouse, partner or children would automatically be able to manage their affairs if they became unable to do so. In reality, this is not the case. Without an LPA, loved ones may need to apply to the Court of Protection for authority to make decisions on your behalf, which can be a long, expensive and stressful process.
The different forms of Lasting Powers of Attorney
There are two main types of Lasting Powers of Attorney in England and Wales:
Property and financial affairs LPA
This form of LPA allows your attorney to make decisions about financial matters. This could include managing bank accounts, paying bills, handling investments, collecting benefits or even selling property if necessary.
A property and financial affairs LPA can be used with your permission while you still have mental capacity, or it can take effect if you lose the ability to manage your finances yourself.
Health and welfare LPA
A health and welfare LPA covers decisions relating to your personal well-being. This may include medical treatment, care arrangements, daily routines and decisions about where you live.
Unlike a financial LPA, a health and welfare LPA can only be used if you are no longer able to make these decisions yourself.
Why an LPA is so important
Life can change unexpectedly. Illness, injury, dementia or other conditions can affect a person’s ability to make decisions at any age.
By putting an LPA in place early, you remain in control of who will act on your behalf if the need arises. You can choose trusted family members, friends or professionals and give them guidance in advance on how you would like decisions to be made.
An LPA can also help avoid disagreements between family members during difficult times. Having clear legal authority in place often makes it easier for loved ones to act quickly and confidently when important decisions need to be made.
How to create an LPA
Although it is possible to complete an LPA yourself using an online service, professional legal advice helps to ensure the document is completed correctly and reflects your wishes accurately.
A solicitor can take into account your circumstances to explain your options, help you choose appropriate attorneys and identify any potential issues before the documents are submitted for registration. This can help avoid delays and provide reassurance that your future interests are protected.
Lasting Powers of Attorney: FAQs
What’s a Lasting Power of Attorney?
A Lasting Power of Attorney is a legal document that allows you to appoint trusted people to make decisions on your behalf if you become unable to do so.
What are the two forms of LPA?
The two types are a property and financial affairs LPA and a health and welfare LPA.
Can my family make decisions for me without an LPA?
Not automatically. Without an LPA, family members may need to apply to the Court of Protection to gain legal authority.
When should I set up an LPA?
It is best to arrange an LPA while you are healthy and have full mental capacity, as it cannot be created once capacity has been lost.
Who can act as my attorney?
You can appoint trusted family members, friends or professional advisers, provided they are suitable and willing to take on the role.
Do I need a solicitor to create an LPA?
A solicitor is not legally required, but is highly recommended as professional advice can help ensure the LPA is valid, properly completed and tailored to your circumstances.
To get started with setting up an LPA, or to find out more about the process, contact Amicus Law.
