Circumstances can change rapidly. A traumatic injury, serious illness or gradual decline in mental capacity (related site) can mean someone becomes unable to deal with everyday choices that they would otherwise be perfectly well able to make. A Lasting Power of Attorney can help prepare for such eventualities by letting you nominate someone trusted to make specific decisions for you if you are unable to do so.
For many, it is a fundamental part of life planning. It’s not just a consideration for older people or those with health problems. It’s a way to ensure your preferences are respected, to make life easier for those close to you, and to make sure practical decisions are not left unanswered.
What Is a Lasting Power of Attorney?
A Lasting Power of Attorney (or ‘LPA’) is a legal document that enables you to select one or more individuals to make decisions on your behalf, if you are no longer able to do so. You are the donor, and they are the attorney.
Their job is not to run your life, but to act in your best interests, doing as much as they can in accordance with your wishes. Depending on the type of LPA, they may be empowered to manage your finances, make decisions about your property, decide where you live or receive care, or deal with other issues relating to your personal welfare.
LPAs typically must be set up while you have the mental capacity to do so. This means being able to understand what an LPA is, who you are choosing as an attorney, and the powers you are granting them.
Why Is Lasting Power of Attorney Important?
Without an LPA in place, those closest to you may not have the legal authority to act on your behalf. It doesn’t matter how close they are to you, if no one has been given the power to make decisions for you, they might find themselves faced with delay, uncertainty, and complicated legal procedures before they can help. Futura Planning recognises that putting arrangements such as an LPA in place can provide greater clarity and reassurance for both individuals and those close to them.
Different Types of Lasting Power of Attorney
There are two main types of LPA, one covering financial affairs and one covering health and welfare decisions. You may wish to set up both of them, or one at a time.
Property and Financial Affairs
A Lasting Power of Attorney for Property and Financial Affairs empowers your attorneys to handle matters relating to your finances and property. Depending on how you set it up, this might involve:
- Paying regular expenses
- Looking after bank accounts
- Arranging pensions or benefits
- Handling property transactions
- Paying for care or other services
- Managing your savings or investments
It can be particularly useful if you become unable to look after your finances yourself, or if you are still mentally capable but physically unable to deal with everyday financial tasks.
Health and Welfare
This type of LPA deals with personal care and wellbeing. This could include decisions regarding their daily routine, medical treatment, where they live and the type of care they receive. These are highly personal decisions. Therefore, choosing your attorney ahead of time ensures that you have selected someone you know well, someone you trust, and someone who will uphold your wishes. Check out https://www.gov.uk/manage-lasting-power-attorney/health-welfare for more info.
Who Should You Appoint as Your Attorney?
Selecting your attorney is one of the most significant decisions involved with creating a lasting power of attorney. Your attorney might be required to make crucial decisions and could face stress or emotional involvement. For this reason, an ideal attorney would be someone who is dependable, responsible, level-headed, and orderly. They would also be someone who you trust, who you know would act in your best interest, and who you feel comfortable speaking to about sensitive matters.
Usually, you can appoint more than one attorney. You might then need to choose whether or not your attorneys must act jointly (on all decisions) or severally (some decisions can be taken independently). Acting jointly offers security as both must agree, but it could be slower. Acting severally can be quicker, but you could lose some protection.
It is always advisable to discuss the appointment with your chosen attorney to ensure they understand the responsibility and are happy to accept it.
When is the Best Time to Create a Lasting Power of Attorney?
The ideal time to create an LPA is before you need it. If you wait until you require it, the process might become unnecessarily complicated and could be impossible if you lose mental capacity.
People tend to put off creating a lasting power of attorney as they feel too healthy, capable, and independent to need one. However, planning for the future isn’t about anticipating exactly what will happen; it’s about making reasonable provision for unexpected eventualities.
A Lasting Power of Attorney is especially valuable if you own property, have savings, have a family to look after, or are strongly opinionated about your care and future. Even if your affairs are straightforward, it may still be worth appointing someone you trust to deal with your property and financial affairs in case you are unable to do so in the future.
Common Misconceptions Regarding LPAs
There are several misconceptions surrounding Lasting Powers of Attorney. One common misconception is that by creating a lasting power of attorney, you give up control of your affairs. This is not necessarily the case. By setting up an LPA, your attorney doesn’t have to act immediately and could only be called upon if needed and within the limits of the document itself.
Another misconception is that relatives will be able to act for you. However, in many cases, they won’t be able to without legal authority, which could lead to frustration.
Some people worry that their attorney will be able to do whatever they want. An attorney should be required to act reasonably and in your best interests. Choosing the right people and providing instructions can help mitigate this risk.
Don’t Put It Off Again!
Lasting Powers of Attorney are easy to procrastinate over as they involve uncomfortable possibilities. However, creating an LPA is one of the most practical and useful things you can do for yourself and those around you.
By appointing trusted attorneys whilst you still have the capacity to do so, you are maintaining control over who you wish to act on your behalf and providing loved ones with reassurance, instructions, and power when they need it most.
