Despite growing awareness of Lasting Powers of Attorney (LPA), many people are postponing the decision to create one until it’s too late. Although the number of LPAs registered in the UK exceeded one million for the first time last year, an ageing population and rising rates of conditions such as dementia mean that many individuals are still without this crucial document.
Wendy Anderson, partner at PM+M, stresses that appointing someone you trust to make decisions on your behalf should be a top priority, particularly as life expectancy increases and the risk of mental incapacity grows.
What is an LPA?
An LPA provides the legal framework for someone you trust to make key decisions on your behalf if you lose mental capacity. That can typically be when you’re older, and developing dementia, but it can also apply at any age if, for example, you have an accident and sustain a head injury. The problem can be, if you find yourself in a similar situation, its often too late to do anything about it. Once someone has lost mental capacity, you can’t get an LPA set up – you must apply to the Court of Protection, an expensive and time-consuming process which can be challenging when you have real time care and funding decisions to make.
There are two types of LPA:
- Health and care decisions (e.g., where you should live, your medical care, what you should eat, who you should have contact with)
- Financial decisions (e.g., buying and selling property, paying the mortgage, managing pensions, investing money, paying bills, and arranging repairs to property)
It is possible to set up different attorneys for each LPA, if required, as well as separate financial LPAs for personal and business finances.
Why do I need an LPA in place?
Many assume that a family member will be given the legal right to make care decisions on their behalf, but this isn’t always the case. The same applies for decisions on finances, selling property, accessing pensions etc.
It is sensible planning for everyone to get LPAs set up – think of it as a type of insurance policy. You hope you will never need them, but they are in place if you do. The health and care LPA can only take effect when you have lost capacity and on the financial side, you can choose whether to activate now for use with your consent or whether it only activates when you lose capacity, so there is nothing to worry about in terms of people trying to make decisions on your behalf before then.
Secure your future now
Most people recognise the importance of making a will after major life events like starting a family or buying a home. However, LPAs are often overlooked until much later, sometimes when it’s too late.
By creating an LPA now, you can spare your loved ones unnecessary difficulties and ensure that you appoint someone you trust to make decisions for you.
There are some pitfalls to avoid which could make your LPA unworkable, so it’s worth taking advice to ensure you avoid them and get it set up correctly – our private client team can support you.
If you would like more information on setting up an LPA or would like to discuss the process in more detail, our team of specialists are perfectly placed to support and guide you in planning now for tomorrow. Get in touch with Wendy Anderson by clicking the button below.
