Have You Ever Considered What a Lasting Power of Attorney Does, and How It Might Benefit Your Family?

Planning for the future involves more than just saving money or writing a will; it also means preparing for unforeseen circumstances that might affect your ability to make decisions. One crucial legal instrument in the UK for such preparation is the Lasting Power of Attorney (LPA). Understanding what an LPA is and how it can benefit your family is essential for safeguarding your interests and ensuring your loved ones can act on your behalf when necessary.​

What Is a Lasting Power of Attorney?

An LPA is a legal document that allows you (the ‘donor’) to appoint one or more individuals (known as ‘attorneys’) to make decisions on your behalf should you lose the mental capacity to do so yourself. This arrangement ensures that your affairs are managed according to your wishes, even when you’re unable to express them. There are two main types of LPA:​

Property and Financial Affairs LPA: This type grants your attorney the authority to handle financial matters such as managing bank accounts, paying bills, collecting benefits or pensions, and selling property. You can choose for this LPA to take effect immediately upon registration or only when you lose mental capacity. ​

Health and Welfare LPA: This LPA allows your attorney to make decisions about your daily routine (e.g., washing, dressing, eating), medical care, moving into a care home, and life-sustaining treatment. It only comes into effect when you lack the capacity to make these decisions yourself. ​

Benefits of Establishing an LPA

1. Control and Peace of Mind
   
   Creating an LPA enables you to choose trusted individuals to manage your affairs, ensuring that decisions made on your behalf align with your preferences. This proactive step provides peace of mind, knowing that your wishes will be respected. ​
   
2. Avoiding Court-Appointed Deputies
   
   Without an LPA, if you lose mental capacity, your family would need to apply to the Court of Protection to appoint a deputy to manage your affairs. This process can be lengthy, costly, and stressful. An LPA allows you to bypass this by appointing attorneys in advance. ​
   
3. Minimising Family Disputes
   
   By clearly outlining your wishes and appointing specific individuals to act on your behalf, an LPA can help prevent disagreements among family members about who should make decisions and what those decisions should be. ​
   
4. Flexibility and Specificity

LPAs offer the flexibility to tailor the authority granted to your attorneys. You can include specific instructions or preferences, ensuring that your attorneys act within the boundaries you set. ​

5. Ensuring Continuity in Business Operations
   
   For business owners, a Property and Financial Affairs LPA can be crucial in ensuring that someone can manage business affairs seamlessly if you’re incapacitated, thereby safeguarding the continuity of operations. ​
   
   Common Misconceptions About LPAs

“I’m Too Young to Need an LPA”

Mental incapacity can result from accidents or illnesses that can occur at any age. Establishing an LPA is not solely for the elderly; it’s a prudent measure for adults of all ages. ​

“My Spouse Can Automatically Manage My Affairs”

Many assume that their spouse or next of kin can automatically make decisions on their behalf if they become incapacitated. However, without an LPA, they have no legal authority to do so, which can lead to complications. ​

How to Set Up an LPA

Setting up an LPA involves several steps:

1. Choose Your Attorneys: Select individuals you trust to act in your best interests.​
2. Complete the LPA Forms: Forms are available from the Office of the Public Guardian (OPG). You can complete them yourself or seek legal assistance.​
3. Sign and Witness: The forms must be signed by you, your attorneys, and witnesses in a specific order.​
4. Register the LPA: Submit the completed forms to the OPG for registration. There is a fee for this process, and it can take several weeks. ​

Final Thoughts
A Lasting Power of Attorney is a vital component of comprehensive future planning. It ensures that, should you become unable to make decisions, those decisions will be made by individuals you trust, in line with your wishes. Establishing an LPA not only protects your interests but also provides clarity and support for your family during challenging times.

Sources:
 Age UK: https://www.ageuk.org.uk/information-advice/money-legal/legal-issues/power-of-attorney
 NHS: https://www.nhs.uk/conditions/end-of-life-care/planning-ahead/lasting-power-of- attorney

 Atomos: https://www.atomos.co.uk/knowledge-hub/insights/the-importance-of-lasting- powers-of-attorney
 Harding Evans Solicitors: https://www.hardingevans.com/news/2024/12/02/benefits-of-a-lasting-power-of-attorney
 TLT Solicitors: https://www.tlt.com/insights-and-events/insight/lasting-powers-of- attorney-myth-vs-reality