What is a Lasting Power of Attorney (LPA)
An LPA is a document which appoints people to manage your property and finances or make decisions regarding your health when you do not have the requisite capacity to make those decisions yourself.
3 main types of Lasting Powers of Attorney
- Health and Welfare LPA: This covers decisions about your health and personal welfare and allows your attorneys to make decisions regarding your daily routine and medical care. It is important to note, however, that your attorneys can only assist with your health and welfare needs when you have lost capacity.
- Property and Financial Affairs LPA (personal): This covers decisions about your property and finances and allows your attorneys to make decisions regarding managing your bank accounts. Paying any bills and dealing with your home.
- Property and Financial Affairs LPA (business): If you own a business you can make a separate LPA in connection with your business property and financial matters. The reason this is often equally important as a personal LPA is because you can appoint different attorneys to look after your business assets, for example, although your family members may be best placed to handle your personal property and financial affairs, they may not be best placed to handle the management of your business. Having a business LPA allows you to appoint someone who would be more appropriate to assist with the business needs to ensure that your business can keep running to enable payment of staff paid and ensure liabilities are dealt with.
Why make an LPA
There are many reasons why you should make an LPA:
- The LPA relating to your Property and Financial Affairs can be used with your consent, before losing capacity. If for example you were on holiday and needed to with your Property and Financial affairs, your attorney could do that on your behalf whilst you were on holiday. However, it is important to note your LPA relating to your Health and Welfare can only be used when you have lost capacity.
- To enable you to control who makes decisions on your behalf if you lose capacity and how those decisions are made.
- To ensure that your wishes are being adhered to during your lifetime.
- To ensure that any decisions are being made with knowledge of your instructions or preferences.
- To give reassurance to your loved ones so that they know they can legally assist you if it is necessary in the future.
- It will also allow for quick decision-making.
If in the event you lose capacity without an LPA in place, your next of kin would have to apply to the Court of Protection for a Deputyship Order and this can be a lengthy and costly process.
If you would like to discuss this in more detail with a solicitor, please contact us on 0345 209 4700