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Why should I have an LPA?

What Is Lasting Power of Attorney

A Lasting Power of Attorney (LPA) is “… a way of giving someone you trust the legal authority to make decisions on your behalf if you lack mental capacity at some time in the future or no longer wish to make decisions for yourself.” – Age UK. There are two types of LPA, one that covers financial decisions, and one that covers health and welfare decisions. To understand a little more about what an LPA is, please do read our article here.

However, even if you know what an LPA is, you may not be sure if you should bother setting one up just yet. If you’re thinking like that, here’s some food for thought.

  • An LPA is only valid if you had the mental capacity to set it up when it was set up – Once it reaches the point that your mental capacity cannot be verified, it is too late.
  • Mental and physical incapacity can hit at any time – This isn’t written to scare you, it’s just one of those things. Accident or illness can strike without warning. If you do not have either type of LPA in place, your family may struggle to gain access to your bank accounts, pay your bills, or make payments on your behalf for your mortgage, etc.
  • Delays and expense – Without an LPA relatives can face long delays and suffer considerable expense if they have to apply through the Court of Protection to get access and control of your assets and finances. This is likely to be the last thing they want to have to deal with when times are tough.
  • The LPA system makes things easier – LPAs are designed to be recognised by official bodies like care homes, HMRC, banks, local authorities, pension providers etc. Once an LPA has been verified, taking action on your behalf becomes much easier for your attorneys.
  • They are not expensive to set up – A small cost to you now will save your family a lot of money in the long term.
  • A financial LPA enables you to retain a lot of control over your affairs – You can, of course, give your chosen attorney(s) free reign, or you can restrict their decision making capacity by specifying your wishes clearly.
  • You don’t need to be incapacitated for a financial LPA to operate – This can be very useful. For example, if you’re on holiday and something happens to your home, your nominated person can take action on your behalf.
  • A health LPA enables you to retain a lot of control over your welfare – You can be very specific about your care, even on day to day matters. For example, you can set out what your day to day routine should be, what you should be given to eat, and who can visit you.
  • An LPA is a legal document that has to be verified – This will give you peace of mind. They have to be signed by a certificate provider or solicitor, which means they are ‘vetted’ by qualified specialists. Plus LPAs cannot be amended or set up by someone else. You are in control.
  • If you don’t have an LPA in place it is the court that decides for you – A court will follow a set procedure, which may limit the amount of power your relatives have. This can make life difficult for them.
  • A court may insist a solicitor is involved – This can make things very expensive.

For more guidance and information on setting up a lasting power of attorney, please do contact us. It’s worth making an informed decision now.

What is an Lasting Power of Attorney (LPA)?

Lasting-Power-Of-Attorney

When you hear talk about Wills, you often next hear talk about LPAs as well – Lasting Powers of Attorney. It’s not so much that they go hand in glove, it’s just that the rationale for having a Will actually points towards the need to have LPAs in place too. So we thought it would be a good idea to give you some information on these useful, and very important, legal documents to complement our article on why it’s important to have a Will (read here).

But what is an LPA?

“A lasting Power of Attorney (LPA) is a way of giving someone you trust the legal authority to make decisions on your behalf if you lack mental capacity at some time in the future or no longer wish to make decisions for yourself.” – Age UK

There are actually two types of LPA. Both fulfil different roles and are not interchangeable. They are:

  1. An LPA for financial decisions

This type of Lasting Power of Attorney can be used while you still have mental capacity. An attorney, a person to whom you give permission to make decisions on your behalf, can generally do so on things such as:

  • Buying and selling property
  • Paying the mortgage
  • Investing money
  • Paying bills
  • Arranging repairs to property
  1. An LPA for health and care decisions

A Lasting Power of Attorney for health and care decisions covers healthcare and personal welfare. It’s important to note that it can only be used once a person has lost mental capacity. A nominated attorney can generally make decisions about things such as:

  • Where you should live
  • What medical care you should receive
  • What you should eat
  • Who you should have contact with
  • What kind of social activities you should take part in

What can I specify in an LPA?

An LPA is a powerful document that enables you to retain control over your life. You can specify exactly what decisions your nominated attorney(s) can make. So you can allow them to make all decisions on your behalf, or restrict them to only certain types of decision. Thinking these things through carefully now, therefore, is worth doing before it’s too late.

One thing to bear in mind is that if you are setting up an LPA for financial decisions, the person you nominate must keep accounts. You can request regular reports on expenditure and income. And if you then lose mental capacity, you can specify that these reports are sent to your solicitor or a family member instead. They must also make sure their money is kept separate from your money. So check that this is possible with them in advance.

When is a lasting power of attorney valid?

IMPORTANT NOTE: An LPA is only valid if:

  • You had the mental capacity to set it up when it was set up
  • You were not put under any pressure to create it

To ensure this, the LPA has to be signed by a certificate provider. When a certificate provider signs the document, they are confirming that you understand what the LPA contains and that you haven’t been put under any pressure to sign it. They are typically someone you know well, but can also be a professional person, such as a doctor, social worker or solicitor.

Once these criteria have been met, the LPA must then be registered with the Office of the Public Guardian (OPG) before it can be used.

A final word…

As you can see, LPAs are important documents that facilitate critical decisions being made on your behalf if you’re no longer to do that for yourself. For more information on why you should have an LPA, please do read our article here or feel free to contact us to discuss your requirements.