Martin Lewis, the Money Saving Expert, has once again reiterated the importance of making Lasting Powers of Attorney (LPAs).
He has previously spoken about LPAs and reminds us that “it’s not just for the elderly”. Martin himself has had one in place for over a decade.
What is a Lasting Power of Attorney?
An 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 incapable of doing so yourself.
There are two types of LPAs, ‘Property and Financial Affairs’ and ‘Health and Welfare’.
The Property and Financial LPA allows your attorneys to make financial decisions on your behalf, manage your bank accounts, pay bills (including care home fees), manage/liaise with pension providers, and can sell your property.
The Health and Welfare LPA allows your chosen attorneys to make decisions about all aspects of your health and welfare for example, attending GP appointments with you, access to your medical records, deciding where you live and potentially make decisions about life sustaining treatment.
What happens if I have no LPA in place?
Incapacity can strike unexpectedly through accidents, strokes or even onset dementia. If you do not have an LPA in place and you lose mental capacity, your relatives, including your spouse, have no automatic right to assist you with your affairs, even if they are your appointed next of kin. Under these circumstances banks and building societies usually freeze accounts and investments until someone is legally appointed to manage your finances.
Without an LPA, your family/loved ones need to make an application to the Court of Protection to enable someone to take control of your finances. Making this application is a costly and time consuming process. It is far easier for your loved ones if you have an LPA in place.
Can Timms help me prepare LPAs?
For some, they may feel comfortable preparing and registering the documents themselves without any legal advice. However each year the Office of the Public Guardian rejects thousands of applications due to errors. It is therefore important to take the correct advice to ensure a smooth process of registering your documents.
At Timms we provide expert advice about the preparation on how your attorneys act, advice about the inclusion of safeguards and guidance on instructions that set out the basis on which your attorneys can act.
LPAs are vitally important legal documents, which can ensure that you get the help you need when you need it most, whilst making the process easier for those supporting you. If someone is prepared to help then it is, perhaps, only fair that they have the right tools for the job.
What is a Will and do I need one?
Whilst looking at preparing LPAs you should also give some thought to making a Will.
A Will allows you to make provision for who should inherit your property and money after your death. You can also appoint someone, known as an executor, to be the appointed person to deal with the administration of your estate (i.e. organise a funeral, close bank accounts and sell a property).
Without a Will, your relatives have no say in who should or shouldn’t inherit your estate. Your estate passes under the rules of intestacy. The rules determine which relatives, in a list of priority, will inherit your estate.
No matter your age or your wealth, making a Will is important to ensure that your estate will pass in accordance with your wishes and that your loved ones are protected. Whilst it is not always a comfortable topic, planning for what happens after you pass away will assist your loved ones by avoiding delays, uncertainty and unnecessary stress.
How can Timms help?
At Timms we are always happy to talk you through your options when you want to make life easier for those close to you. If you require any further information about LPAs and Wills please do not hesitate to contact me at m.lovell@timms-law.com or 01283 561531.
