How Lasting Powers of Attorney could help secure your future
No one can predict what the future has in store so planning for unforeseen circumstances is an important aspect of personal and financial management. Lasting Powers of Attorney (LPAs) can be a major part of securing your future and creating that all important peace of mind. Here are some of the key points you may wish to know about LPAs.
What are Lasting Powers of Attorney?
A Lasting Power of Attorney is a legal document that grants authority to a chosen individual (known as an attorney) to make decisions and act on behalf of another person (known as the donor) when they are no longer able to do so themselves.
Who needs an LPA?
LPAs are relevant to individuals of all ages, as incapacity can occur unexpectedly and at any stage of life. By appointing attorneys through LPAs, you can ensure that your personal and financial affairs are managed by trusted individuals who understand your wishes and best interests.
What is the legal position?
The Mental Capacity Act 2005 provides the legal framework for LPAs. It sets out the principles, procedures, and safeguards for decision-making on behalf of individuals who lack mental capacity.
The Act emphasises the importance of respecting individuals’ autonomy, promoting their best interests, and involving them as much as possible in decision-making processes.
Who regulates LPAs?
The Office of the Public Guardian is responsible for supervising LPAs in England and Wales. It maintains a register of LPAs, provides guidance to attorneys and donors, and ensures compliance with legal requirements.
Are there different types of LPAs?
Yes.
A Property and Financial Affairs LPA grants attorneys the authority to manage your financial matters, including banking, property, investments, and paying bills. This type of LPA allows attorneys to make decisions regarding property sales or purchases, managing assets, and dealing with tax matters.
A Health and Welfare LPA grants attorneys the authority to make decisions regarding the donor’s health and personal welfare, including medical treatment, living arrangements, and end-of-life care. This LPA ensures that the donor’s personal wishes and beliefs are respected when it comes to important healthcare and welfare decisions.
Who should I choose as an attorney?
Attorneys should be someone you trust totally and who has your best interests at heart, possesses good decision-making skills, and who will always put you first.
How do I set up an LPA?
To create an LPA, you must complete the appropriate forms, which are available from the OPG. The forms require detailed information about the donor, attorneys, and any specific instructions or preferences.
Your solicitor will help you through the various stages and ensure that the LPA suits your needs and is in your best interest.
Is creating an LPA a one-off event?
It could be but it’s better to regularly review and update LPAs to ensure they accurately reflect your current wishes and circumstances. Changes in personal relationships, financial circumstances, or health conditions may warrant amendments to the LPA. Reviewing the LPA every few years can help maintain its relevance and effectiveness.
Please contact us if you would like more information about setting up or amending an LPA.