A Lasting Power of Attorney is a crucial life planning tool. It enables you to ensure that important decisions regarding your health and finances will be taken by people you trust if you become incapable of making them yourself. In this Lasting Power of Attorney Guide, our specialist power of attorney solicitors explain what Lasting Powers of Attorney are, how you create a Lasting Power of Attorney, and why everyone should consider making one.
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What Is A Lasting Power Of Attorney?
A ‘Lasting Power of Attorney’, often shortened to ‘LPA’, is a legal document through which you nominate certain individuals to act as your ‘attorneys’. The LPA gives those attorneys the power to make decisions on your behalf if there comes a time when you lack the mental capacity to do so for yourself.
Are There Different Types Of Lasting Powers Of Attorney?
Yes, there are two types of Lasting Powers of Attorney in the UK. One applies to decisions relating to medical and welfare issues, such as whether you should receive a certain kind of treatment, and is known as a ‘Health and Welfare LPA’. The other applies to decisions relating to your finances and the property you own, and is known as a ‘Property and Financial Affairs LPA’.
• Health And Welfare LPAs.
Health and welfare LPAs ensure important decisions relating to medical treatment and life-saving interventions fall to those you know and trust if you can’t make them yourself. However, they don’t only cover life-or-death situations. You can also use a Health and Welfare LPA to document your wishes and instruct your attorneys in connection with everyday issues, such as eating and personal hygiene preferences.
Your Health and Welfare LPA will only come into play as and when you can’t make decisions for yourself. Furthermore, if you subsequently regain capacity, you will take back control of your decisions.
• Property And Financial Affairs LPAs.
When you make a Property and Financial Affairs LPA, you nominate people you trust to make decisions about your money and property. Crucially, a Property and Financial Affairs LPA comes into effect as soon as it is registered with the Office of the Public Guardian, unless you expressly state otherwise.
Under a Property and Financial Affairs LPA, you can give control of all decisions relating to your finances to your attorneys, or you can specify the types of decisions they are permitted to make.
Examples of the types of decisions you may wish them to take control of include the following:
- Decisions relating to any property you own, for example, whether it should be sold or rented out.
- Decisions relating to your investment portfolio.
- Decisions relating to your bank accounts.
- Decisions regarding what items you need to buy with your money.
- Decisions relating to using your money to purchase gifts for loved ones on your behalf.
Can You Cancel A Lasting Power Of Attorney If You Change Your Mind?
Yes, you are at liberty to change your mind and cancel your LPAs at any time, provided you have the requisite mental capacity.
How Do You Create A Lasting Power Of Attorney?
You must be over the age of 18 and be of sound mind to make an LPA. Once your LPAs have been prepared, they need to be registered with the Office of the Public Guardian.
You are not obliged to seek legal advice when preparing either a Health and Welfare LPA or a Property and Financial Affairs LPA. However, given the crucial role their LPAs may play in their futures, most people choose to enlist the support of specialist power of attorney solicitors like us to ensure the documents are accurate and properly registered.
Why Are Lasting Powers Of Attorney So Important?
Contrary to what many people believe, your next of kin, like your husband, wife, or civil partner, is not automatically entitled to manage your affairs if you are rendered unable to do so, for example, following an accident or due to a medical condition. This means that if you don’t put LPAs in place nominating your next of kin to act as your attorney, they may be unable to take charge of really important decisions about your future. Instead, the power may go to someone you don’t know, like a member of your medical team.
Furthermore, your next of kin may find themselves in the unenviable position of being denied access to your medical notes and other important documentation. If you require ongoing medical care, they may be unable to retrieve the funds held in your bank account to finance it and so face a financial crisis.
Many people don’t start considering making LPAs until they get older or receive a life-changing diagnosis. However, future life planning is essential for everyone. By taking proactive steps to empower those you trust to make vital decisions on your behalf, you gain peace of mind that your affairs will be managed by people who have your best interests at heart.
Reach out to Birch & Co’s specialist and supportive team today. Call us on 0191 284 5030 or complete a Free Online Enquiry.
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