Lasting power of attorney
often referred to as LPA
Why we should all have a Lasting Power of Attorney grant in place
According to the Alzheimer’s Society by the year 2025 more than 1 million people in Britain will be suffering with dementia. One in five people over the age of 85 already has it, with women twice as likely to be sufferers than men. If you are unfortunate to be one of those who are diagnosed with this awful disease you will find that your financial affairs will be virtually impossible to manage.
What is a Lasting Power of Attorney (LPA)?
Plan ahead so as to ease the potential burden on your relatives. Making a Lasting Power of Attorney does not mean that you can no longer make decisions for yourself. The purpose of these documents is that if you are unable to make decisions in the future, your chosen representative(s) can make these decisions for you.
It’s an important legal document that lets you appoint one or more people to help you make decisions, or make decisions on your behalf if you are unable to. Think of an LPA like an insurance policy, putting it in place while you’re fit and healthy gives you peace of mind knowing that, no matter how life plays out, your health and financial matters will be managed as per your wishes.
There are two separate lasting power of attorneys. One covers your Property and Financial decisions and the other covers your Health and Welfare decisions. Most people take both out at the same time to ensure they have full coverage should the worse happen.
Lasting Power of Attorney (LPA)
Here’s how it works: Margaret suffers an unexpected illness or accident, resulting in a loss of mental capacity.
Next of kin does not have the legal right to make decisions for Margaret.
- Sole bank accounts are frozen
- Joint bank accounts are frozen in some circumstances
- Bills can't be paid from Margaret’s money
- Investment decisions can’t be made (any previous authority given to make investment decisions are cancelled)
- Property can't be sold, meaning a co-habiting partner can’t move house if they wanted to
- Next of kin don’t have the legal rights to make decisions about medical treatment
- Next of kin don’t have the legal rights to make personal choices, for example where Margaret should live
If you don’t plan ahead and you suffer an accident or illness which causes you to lose mental capacity, your next of kin can only act on your behalf through a Court Order. This is a long, costly and intrusive process.
Margaret puts LPAs in place for both financial and healthcare decisions appointing a representative.
- Margaret has legally appointed a representative to make decisions about her finances
- The bank recognises the chosen representative’s legal authority and no accounts are frozen
- Investment decisions can be made by Margaret's representatives
- Bills can be paid as normal
- Property can be sold if needed
- The representative has the legal right to make decisions about Margaret’s medical treatment
- The representative can make personal choices for Margaret, such as where to live
By planning ahead, you can choose who should have legal authority to make decisions on your behalf.
If you’re unable to make decisions for yourself. A Lasting Power of Attorney costs far less than a Court Order and the people you choose can act as soon as needed.