Lasting Powers of Attorney (LPAs) are commonly misunderstood and stigmatised as pertinent only for the elderly. However, young people should give serious thought to the advantages LPAs provide in case of an unforeseen event. When you have a lasting power of attorney set up, you can rest assured that you will always have the final say on the most important matters in your life.
What is an Lasting Power of Attorney?
It is a common misconception that executing an LPA entails relinquishing control. In fact, the opposite is true. Having an LPA allows you to appoint someone you trust to make important decisions on your behalf if you are unable to do so yourself. Without one, you will have very limited, if any, say in who is appointed to represent you, and thus potentially no say in your health/care decisions or financial management.
Making an LPA allows you to leave specific instructions to someone/people you know and trust (your attorney(s)). You can also specify when the LPA will take effect. That is, immediately or only if mental capacity is lost.
Consider an LPA to be a kind of insurance policy: you hope you never have to use it, but you have peace of mind knowing it’s there if you do.
Types of Lasting Power of Attorney
There are two types of LPA: one for health and welfare decisions and one for property and finances. You have the option of having one or both LPAs prepared.
Your welfare, medical treatments, and general day-to-day care are all covered by the Health and Welfare LPA. You can leave explicit instructions to your attorney(s) here for things like whether you prefer to be cared for in your own home or in a residential care home setting if your health deteriorates, whether you would/would not opt for any medical treatments, whether you have a preferred hair stylist you want to continue seeing, and whether you want to continue using any specific products. This LPA takes effect only if you lose mental capacity.
The Property and Financial Affairs LPA protects all of your assets, property, and money in England and Wales. Here you can give your attorney(s) specific instructions on how you want your money spent and/or invested. You can specify whether you want this LPA to take effect immediately or only if you lose mental capacity. You may want it to take effect immediately if, for example, you are selling a property and will be out of the country during the sale process, or you have mobility issues and find it difficult to get to the bank.
The Importance Of Having An LPA
Without an LPA, no one, not even your immediate family, has the legal authority to make these decisions for you. In this case, the only option is for someone (who may or may not be the person you want) to apply to the court for a Deputyship Order. This can be a costly and time-consuming procedure. However, with proper planning and the right support, you can decide who will receive this authority and guide them in the right direction to help them make the best decisions for you.
Do you own a business? If this is the case, an LPA tailored to your company’s needs is a must-have document. It is not uncommon for a business owner to have two LPAs: one for personal affairs and one for business affairs. You may choose to delegate authority to your spouse/civil partner for personal matters while delegating authority to a trusted business colleague or professional (such as your accountant) for business decisions.
Keep control of your future if you lose the ability to make decisions for yourself, and take the guesswork out of the equation for those who will eventually make decisions on your behalf.
