What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document which allows you to appoint one or more people who you trust (Attorneys) to manage your affairs and make decisions on your behalf, should you become mentally or physically incapable of doing so yourself.
There are two different types of LPA:
- The Property and Financial Affairs LPA allows your attorneys to make financial decisions and manage your bank accounts, bills (including care home fees), pensions, and can even allow them to sell your home.
- The Health and Welfare LPA enables the attorneys to make decisions, but only if you cannot make these decisions for yourself, about all aspects of your health and welfare. For example, they could attend GP appointments with you, access to medical records, decide which nursing home you should live in and potentially make decisions about life sustaining treatment.
Can I have both types of LPA?
Yes, you can have both or just one. You can even appoint different attorneys in each LPA, if this works better for you and them. To make an LPA you must be 18 or older and have mental capacity to give instructions.
Who can I appoint?
Your Attorneys should be people you trust and who are reliable. It also helps if they are good with money and are well organised. Some people prefer to appoint someone close to them such as a family member or people who are geographically close. However, this isn’t always necessary.
If you don’t have any close family or friends who would be suitable to assist you, there is always the option to appoint a professional, such as a solicitor or an accountant to act as your Attorney.
You can appoint more than one attorney to act for you simultaneously, or you can appoint one main attorney with substitute attorneys.
Why do I need an LPA?
If you lose mental capacity and you do not have an LPA in place your loved ones may struggle to assist you with both your financial affairs and your medical decisions. Banks and other financial providers will often freeze bank accounts when someone loses mental capacity, and they will not allow access until someone is legally appointed to act for the incapacitated person. This applies even to joint accounts.
If there is no one with the authority to help you then there could be issues with accessing your money or selling your home if you need to go into care. This can cause a lot of uncertainty and worry for the people who wish to assist you.
When should I make an LPA?
There is no set time to do this but we always advise clients to do it as early as possible. You must have mental capacity to make an LPA therefore there is no point waiting for something to happen to you, because by then it may be too late.
An LPA needs to be registered and this can take up to 20 weeks.
Think of it as an insurance policy which is in place to protect you if the need arises.
What happens if I lose mental capacity without an LPA in place?
Someone (a family member or a professional) would have to apply to the Court of Protection on your behalf to become your Deputy.
The application is lengthy and costly so having a Lasting Power of Attorney would be beneficial.
Next Steps...
If you would like more information on Lasting Powers of Attorney or would like to book an appointment to make your LPA, please call freephone 0800 011 6666 or email at legal@timms-law.com.
