Lasting Powers of Attorney are not just for the elderly!

Interestingly, a lot of people know about the importance of putting Wills in place but very few know about the importance of putting Lasting Powers of Attorney in place.

Lasting Powers of Attorney are crucial if you were to become mentally and/or physically incapable. Life can be unexpected, and Lasting Powers of Attorney should not therefore just be considered as something to put in place in later life.

According to the Alzheimer’s Society, it is estimated that by 2025, more than 1 million people in the UK will have dementia and currently, one in five people over 85 are already suffering from it, with rates significantly higher among women than men.

What are Lasting Powers of Attorney?

A Lasting Power of Attorney (LPA) gives another individual the legal authority to take care of your financial affairs or health and welfare matters in the event you are no longer able to do this for yourself.

If you do not have an LPA in place and later lose capacity, your relatives may face long delays and crucially, incur a lot of money in applying to the court of protection to obtain a deputyship order to take control of your assets and finances. Critically, you have no control over who makes this application which could mean someone is appointed to manage your affairs who you would not have chosen yourself.

What types of Lasting Powers of Attorneys are there?

There are two types of LPAs: –

1. Property and Finance; and
2. Health and Welfare.

Property and Finance Lasting Power of Attorney

• This covers decisions relating to financial matters. This extends to the attorney’s ability to buy and sell property, dealing with your bills, managing your bank accounts and investing your money.

Health and Welfare Lasting Power of Attorney

• This covers decisions relating to your health and wellbeing, also known as a Personal Welfare LPA. This extends to the attorney making decisions about where you should live, your diet, your medical treatments and who you should have contact with. It also provides you with the choice as to whether you would want your Attorneys to give or refuse consent to life sustaining treatment on your behalf.

It is important to highlight that an attorney under a property and finance LPA can make decisions for the donor whilst they have capacity if the donor authorises them to do so, whereas a health and welfare LPA can only be used once  the donor has lost capacity.

Choosing an attorney

It is important to ensure that you are appointing attorneys whom you can trust implicitly, they must be over the age of 18 and not bankrupt (in terms of the finance LPA). The attorneys you choose should be willing to take on the role as it is a serious responsibility. They must ensure that they have your best interests in mind when making decisions and they should also adhere to the principles set out under the Mental Capacity Act.  As a donor, you can restrict or specify the types of decisions the attorney can make, and provide guidance.

Whilst you can draft Lasting Powers of Attorney yourself, it is recommended that you seek legal advice as a Private Client solicitor can talk you through your options, explain the authority conferred by the LPA in detail and discuss whether you wish to add any guidance or restrictions. Seeking specialist legal advice will also ensure that the paperwork is completed correctly, that your LPA is properly registered and therefore valid, and most importantly, that it reflects your wishes.

For further advice and assistance please contact our Wills, Trusts and Probate team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk