Appoint those you trust to help make decisions.
What are Lasting Powers of Attorney?
The Lasting Powers of Attorney allow for a Donor (the individual creating the powers) to appoint trusted individuals (Attorneys), be that family or friends, to deal with their Property and Financial and Health and Welfare matters if they were to become mentally (or physically) incapable of managing their own affairs. There are two separate powers that are reflected on two separate legal documents, meaning you can choose separate Attorneys for each should you wish.
What are the two types of Lasting Powers of Attorney?
Property and Financial LPA
A Property and Financial LPA appoints attorneys to deal with matters such as property sale or rental, managing bank accounts, investments and pensions as well as making payments for care, rent, utilities right through to continuing with birthday and Christmas gifts for family. Without an LPA the banks and financial institutions will freeze the accounts until a Deputyship order is in place, leaving many families stuck and desperate in this distressing time. The property and Financial LPA can be used once it is registered by the Office of the Public Guardian and upon both mental incapacity, and physical incapacity provided the actions taken are at the direction of the donor in this event.
Health and Welfare LPA
A Health and Welfare LPA appoints attorneys to deal with matters such as medical decisions, treatment and medication, life sustaining treatment, social or residential care matters and extending to everyday life decisions like feeding and clothing. The Health and Welfare power has seen to be described as less important by some ill-informed legal advisors in the past, however it is quite the opposite. As a person lacking in mental faculties it is surely of upmost importance to ensure their comfort and level of treatment during these difficult times. The Health and Welfare LPA can be used by the attorneys once it is registered by the Office of the Public Guardian and only upon mental incapacity of the donor as up until this point they are capable of making these decisions themselves.
Why are LPAs as important as instructing a Will?
Over the last century the average life expectancy in the UK has increased by over thirty years which is why today we are seen to be living in an ‘aging population’. Living later increases the likelihood in developing many age-related which can find the individual requiring increased assistance and care later into life. The difficulty arises when an individual begins to lack the capacity to be able to make decisions regarding their finances and welfare. Life does not just stop at this point, the incapacitated will often still have property, accounts and pensions in their name, and they will most likely be requiring ongoing medical treatment and, possibly, care, whether that be in the home or residential.
It is wide belief that the next of kin can take over such matters, this is not true. Without an LPA, the Local Authority have accountability over the individual, leaving the family and individual in a vulnerable position.
To learn more about Lasting Powers of Attorney, have a look at our FAQs page or contact our team, and we will happily answer your questions.