Why do I need an LPA?
Which? carried out a survey recently which revealed that there is a lot of confusion and misunderstanding about Lasting Powers of Attorney.
One misconception is that almost 75% of people think that once they take out a Lasting Power of Attorney they will lose control of their assets.
However, this is not the case. Your Attorney(s) have a duty of care towards you and must always act in your best interests.
The survey also found that many people believed that LPA’s were only for the elderly but they are just as important for young people.
Perhaps the most misunderstood aspect of LPA’s is that many people believe that they only need to take out an LPA when they are no longer capable of handling their own affairs. Nothing could be further from the truth. LPA’s can only be obtained by a Donor (the person taking out the LPA) whilst they have mental capacity. Sadly, many people leave it until it is needed which may be too late.
The two types of Lasting Powers of Attorney
a) Property and Financial; and
b) Health and Welfare.
You can take out just one type although it makes sense to take out both together – in which case discounts are often available.
Lasting Powers of Attorney enable you to authorise someone you trust to handle your property and financial affairs and/or make decisions about your health and welfare if you are unable to do so. This may be due to unforeseen circumstances such as illness, injury – either temporary or permanent - or disability, such as dementia.
A Health and Welfare LPA covers decisions about what medical treatment you should or shouldn’t have or where you should live. This type of LPA does not become effective unless you lose mental capacity to make those decisions yourself.
With a Financial and Property LPA your Attorney(s) – the person or people you choose to make decisions on your behalf can act, if you wish, as soon as the LPA is registered with the Office of the Public Guardian.
You can appoint more than one attorney and specify whether they can act individually or jointly.
Court of Protection
Life can take unexpected turns and if capacity is lost and an LPA is not in place it may mean that your family will have to apply to the Court of Protection to manage your affairs. This is far more expensive than taking out an LPA and is very time consuming. It may also be the case that the Court will appoint someone whom you would not have chosen yourself to manage your affairs.
The whole process takes only a few weeks and can save endless worry and inconvenience. Once in place an LPA will last a lifetime although if circumstances change you can revoke an LPA provided you still have mental capacity.
