Appointing someone you trust to handle important matters

Safeguarding your future and ensuring your wishes are respected

When our health declines, even simple tasks like managing finances or making healthcare choices can become daunting. This is where a Lasting Power of Attorney (LPA) is vital in protecting your future and ensuring your wishes are honoured.

An LPA is a legally binding document that enables you to appoint someone you trust, known as your ‘attorney’, to manage important matters on your behalf if you’re unable to do so yourself. This trusted individual can support you with decisions or take full responsibility, but they must always act in your best interests.

Gaining reassurance for an unpredictable future

Although creating an LPA is a separate legal process from writing a Will, people often choose to arrange both simultaneously as part of a comprehensive future plan. The reassurance comes from knowing that a trusted person will be empowered to make decisions on your behalf if you are unable to do so, whether due to illness, old age or an accident.

An LPA authorises your attorney to handle various aspects of your life, from your property and finances to your health and personal wellbeing. Most importantly, it can include specific instructions and preferences that mirror your values and wishes, ensuring that what matters most to you will always be protected by someone who understands you well.

Importance of acting while you have capacity

To establish a valid LPA, you must have full ‘mental capacity’. This means you need to fully understand the implications of the document and the responsibilities you are assigning at the time it is created. Once this capacity is lost, creating an LPA is no longer possible and no one can do it on your behalf.

A common misconception is that your next of kin, such as a spouse, partner or children, automatically has the authority to manage your affairs if you lose the ability to do so. Without a registered LPA, this is not the case. This lack of legal authority can cause costly, stressful and time-consuming legal hurdles for your family during a difficult period.

Understanding the different types of LPA

In England and Wales, there are two different types of LPA intended to cover the main areas of your life where support may be required. You can choose to make one or both.

Health and Welfare LPA

This type of LPA concentrates on your personal healthcare and overall wellbeing. It grants your attorney the authority to make decisions regarding your medical treatment, your daily routine (such as diet and dress), where you reside and even whether to accept or decline life-sustaining treatment, provided you give them that specific power. This LPA only becomes effective if you lose the mental capacity to make these decisions yourself.

Property and Financial Affairs LPA

This LPA gives your attorney authority over all your financial affairs. This covers managing bank and savings accounts, paying bills, collecting your pension or benefits, handling investments and buying or selling property on your behalf. Unlike the Health and Welfare LPA, you can choose for this document to take effect immediately once it is registered, enabling your attorney to assist you even if you still have mental capacity but require physical help with managing your finances.

Risks of not having an LPA in place

If you lose capacity and do not have an LPA, your loved ones might face serious legal and administrative issues. Without clear legal authority, they cannot access your bank accounts to pay bills, manage your investments or sell property to cover care costs.

In such circumstances, your family would likely need to apply to the Court of Protection to gain legal authority. This involves applying to become a ‘Deputy’ to manage your affairs. This process can be complex, expensive and lengthy, placing a considerable burden and added stress on your loved ones when they are already concerned about your welfare.

Why professional advice is so important

Seeking professional advice when establishing an LPA is invaluable for navigating the complexities of preparing the document and for including specific instructions and preferences that matter to you.

This will also ensure the document is drafted accurately and unambiguously, providing peace of mind, simplifying the process for your legal adviser and reducing the risk of future confusion or disputes.

Securing your financial stability

A Property and Financial Affairs LPA has broad uses. It can be utilised not only if you lose mental capacity but also in cases where physical difficulties, such as a long-term illness or mobility problems, prevent you from managing your finances yourself.

This type of LPA is also a practical option if you travel often or live abroad for long periods. Appointing an attorney to manage your assets and financial responsibilities in the UK can ensure everything is handled promptly, without delays or mismanagement.

Protecting your personal wishes and autonomy

An LPA is more than just a legal formality; it is a powerful instrument that allows you to maintain control over the course of your life, even in unforeseen circumstances. Whether it involves securing your financial future or protecting your personal healthcare preferences, establishing an LPA provides significant peace of mind for both you and your loved ones.