In the event that you cannot make decisions, a lasting power of attorney (LPA) allows you to appoint someone to do so. This could happen due to illness, injury, or other circumstances that affect your mental or physical capacity. When you’re unable to manage your personal or financial matters, setting up an LPA empowers someone you trust to take over.
Knowing that someone you trust will manage your affairs in accordance with your preferences gives you peace of mind. It’s an essential part of future planning, particularly as we age or face potential health challenges.
What are the different types of lasting power of attorney?
There are two main types of LPA, each designed to cover specific aspects of your life:
1. Health and welfare LPA
This type of LPA allows your attorney to make decisions regarding your health care, medical treatment, and personal care if you’re unable to do so. Your attorney can make choices about your living arrangements, such as whether you need to move into a care home, and they can decide on your medical treatment if you’re unable to communicate your wishes.
Only when you lose mental capacity can you use this type of LPA. For example, you have a serious medical condition like a coma or advanced dementia and can’t make decisions.
2. Property and financial affairs LPA
Your attorney will have the authority to handle all your financial concerns, including the payment of bills, the management of bank accounts, and other financial matters. Even with mental capacity, this LPA allows your attorney to manage your affairs before you lose it.
This LPA also covers decisions about your property, including buying or selling it, managing your pensions, and dealing with your taxes.
Who can be an attorney?
The person you appoint as your attorney should be someone you trust implicitly. They will be responsible for making crucial decisions on your behalf. You can appoint a family member, a close friend, or a professional such as a solicitor to act as your attorney.
If you appoint more than one attorney, you’ll need to decide how they should make decisions—either jointly (together) or individually and severally (independently, or together).
How do you establish a permanent power of attorney?
To set up an LPA, you’ll need to complete specific forms for either health and welfare or property and financial affairs. These forms are available from the Office of the Public Guardian (OPG). Once completed, the document needs to be signed by you, your chosen attorneys, and a certificate provider who can confirm you are fully aware of the implications of creating an LPA.
After completing the forms, you must register the LPA with the OPG. There is a registration fee, and the process can take up to 20 weeks. Start this process early to ensure you have your LPA in place before you need it.
Why is a lasting power of attorney important?
An LPA allows a trusted person to make decisions for you if you can’t. It avoids delays and complications in the event that you lose mental capacity, helping your loved ones and ensuring your wishes are respected. Without an LPA, your family may have to petition the court to manage your affairs, which is time-consuming and expensive.
Conclusion
A lasting power of attorney is a crucial part of planning for the future, protecting your rights, and ensuring that your wishes are carried out if you can no longer make decisions yourself. Setting one up early can give you peace of mind that someone you trust will manage your affairs and represent your best interests. Speak to a solicitor to ensure your LPA is set up correctly and to get professional advice on making important decisions about your future.