Do not leave it to chance!

It may be hard to consider but one day you may not be able to make any decisions due to an illness. Getting a Lasting Power of Attorney is one of the best ways to help you and your family manage this difficult time.

What is Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document which allows you to choose and appoint your attorneys to make decisions for you and manage your affairs if you lose mental capacity in the future. An LPA can only be set up while you still have mental capacity.

I have a Will should I make an LPA?

Wills and LPAs are complimentary, and they enable you to take control over your affairs.

• Lasting Power of Attorney (LPA) - protects your wishes and decisions during your lifetime.

• A Will - protects your wishes and decisions after your death.

  
  

Most people believe that LPAs are only for the elderly but that’s simply NOT the case. Your ability to make important decisions can be lost because of an accident, stroke, or illness at any age. LPAs are your way of giving people you know and trust, the power to act on your behalf and make decisions for you, should the unexpected occur.

There are TWO types of LPA:

▪ Property and financial affairs LPA - grants your attorneys the power to make decisions regarding your property and finances on your behalf, including but not limited to:

✓ Paying bills

✓ Managing bank accounts including joint accounts*

✓ Collecting your pension

✓ Selling your home

✓ Dealing with savings and investments

✓ Arranging and collecting benefits

▪ Health and welfare LPA - gives your attorneys the ability to make decisions about your welfare if you are unable to make them yourself. This could include decisions relating to:

✓ Medical care

✓ Where you should live – for instance, moving into a care home

✓ Daily care such as what clothes you wear

✓ Life-sustaining treatment

What happens without a Lasting Power of Attorney?

Many people assume that their spouse would be able to act on their behalf if they lose capacity, but this is NOT correct. If you’ve lost capacity, an application to the Court of Protection for a Deputyship order must be made, usually involving a solicitor.

The main issues with this are time delays, cost, and the potential loss of control over your own affairs.

• The process can take around 9-12 months. During this time your bank accounts (including joint accounts) will be frozen meaning you have no access to funds.

• The cost of application for Deputyship order often varies between £2,000 and £3,000 and someone else must pay as your funds are frozen.

• A judge will make the final decision as to who is appointed to deal with your affairs. Often it is not the person you would have chosen. This person is called a Deputy and they may ultimately end up being a legal professional, such as a solicitor. This means that your family will have to deal with a court appointed official every time a decision (for example a bill needs paying) is required. They would charge their normal hourly rate to act on your behalf (often £300 per hour or more).

If you want to be sure that your loved ones have the power to care for you and make decisions on your behalf, then you need to have Lasting Powers of Attorney in place.

What if you have an EPA?

The Enduring Power of Attorney (EPA) preceded the LPA which came into effect in 2007. An EPA only applies to property and finance. These are still legal documents like the LPA, and they can be used without being registered but only if the donor has not lost mental capacity.

However, they must be registered if the donor has lost mental capacity for the attorney to act on their behalf. If you have an EPA, it must have been dated before 1st October 2007 for it to be valid and you can still register it with the Court of Protection. If it is dated on or after the above date, then it is invalid and cannot be used.

Important note: If you are unsure that the documents you have in place are fit for purpose, then it is essential that you contact us so we can help you carry out a review and help you to put the correct documentation in place.

Act now to be in control of your life.

If you would like to speak to us about making a Lasting Power of Attorney, please call 01926 897077 or email: anna@citywidewills.co.uk, or contact us here.

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